Plus   Neg

Oversold KOSPI Nonetheless Called Lower Again

The South Korea stock market has finished lower in seven straight sessions, plummeting more than 125 points or 5.6 percent along the way. Now at a fresh seven-week low, the KOSPI rests just beneath the 2,230-point plateau and it's looking at another soft lead again on Thursday.

The global forecast for the Asian markets is broadly negative thanks to growing concerns over growth, trade and interest rates. The European and U.S. markets were firmly in the red and the Asian bourses are expected to open in similar fashion.

The KOSPI finished sharply lower on Wednesday following losses from the construction companies and automobile producers, while the financials and technology stocks were mixed.

For the day, the index dropped 25.22 points or 1.12 percent to finish at 2,228.61 after trading between 2,222.95 and 2,257.52. Volume was 348.9 million shares worth 6.3 trillion won. There were 767 decliners and 107 gainers.

Among the actives, SK hynix skidded 1.26 percent, while Samsung Electronics added 0.78 percent, LG Electronics plunged 3.83 percent, Hyundai Engineering & Construction plummeted 10.54 percent, GS Engineering & Construction tumbled 2.64 percent, KB Financial dropped 1.07 percent, Shinhan Financial climbed 1.32 percent, POSCO perked 0.18 percent, SK Telecom spiked 2.33 percent, KEPCO retreated 3.98 percent, Hyundai Motor fell 1.64 percent and Kia Motors eased 0.15 percent.

The lead from Wall Street is brutal as stocks saw substantial weakness on Wednesday, with the tech-heavy NASDAQ tumbling to a three-month closing low.

The Dow shed 831.83 points or 3.15 percent to 25,598.74, while the NASDAQ plunged 315.97 points or 4.08 percent to 7,422.05 and the S&P tumbled 94.66 points or 3.29 percent to 2,785.68.

Technology stocks led the way lower on Wall Street, with Netflix (NFLX), Amazon (AMZN), Apple (AAPL) and Facebook (FB) all posting significant losses on the day.

The sell-off came amid lingering concerns about the outlook for interest rates following a recent increase in treasury yields. Treasury yields moved higher after the Labor Department reported a rebound in producer prices in September.

The Federal Reserve raised interest rates by a quarter point to 2 to 2.25 percent last month, marking the third rate hike this year. The Fed's projections point to one more increase in rates this year and three rate hikes next year.

Crude oil prices drifted lower on Wednesday, amid prospects of a drop in crude demand due to weak global economic growth outlook. Crude oil futures for November ended down $1.79 or 2.4 percent at $73.17 a barrel.

Closer to home, South Korea will release August figures for current account later this morning; in July, the current account surplus was $8.76 billion.

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