Plus   Neg

Continued Consolidation Called For KOSPI

The South Korea stock market has moved lower in consecutive trading days, sinking almost 40 points or 1.9 percent along the way. The KOSPI now rests just beneath the 2,090-point plateau and it's expected to open in the red again on Monday.

The global forecast for the Asian markets is negative thanks to unrest in Hong Kong and how it may delay any resolution in the trade spat between the United States and China. The European and U.S. markets were down on Friday and the Asian bourses are tipped to open in similar fashion.

The KOSPI finished sharply lower on Friday with broadly based damage - especially from the financials, industrials and technology stocks.

For the day, the index tumbled 30.64 points or 1.45 percent to finish at 2,087.96 after trading between 2,085.10 and 2,125.53. Volume was 422.3 million shares worth 4.9 trillion won. There were 630 decliners and 213 gainers.

Among the actives, Shinhan Financial sank 2.13 percent, while KB Financial lost 1.07 percent, Hana Financial skidded 1.52 percent, Samsung Electronics dropped 1.95 percent, LG Electronics cratered 3.96 percent, LG Chem fell 0.81 percent, SK Hynix tumbled 2.29 percent, POSCO shed 0.86 percent, SK Telecom dipped 0.20 percent, KEPCO climbed 1.45 percent, Hyundai Motors plunged 2.42 percent and Kia Motors plummeted 2.92 percent.

The lead from Wall Street is soft as stocks gave ground in Friday's shortened session retreating from Wednesday's record closing highs.

The Dow shed 112.59 points or 0.40 percent to 28,051.41, while the NASDAQ lost 39.70 points or 0.46 percent to 8,665.47 and the S&P 500 fell 12.65 points or 0.40 percent to 3,140.98. For the week, the NASDAQ surged 1.7 percent, the S&P jumped 1 percent and the Dow rose 0.6 percent.

The weakness on Wall Street came as traders cashed in on recent gains amid concerns rising tensions between the U.S. and China over the situation in Hong Kong could impact ongoing trade talks.

After President Donald Trump signed two bills in support of pro-democracy protesters in Hong Kong, a spokesman for China's Foreign Ministry threatened strong countermeasures.

After moving higher in the two previous sessions, crude oil prices showed a substantial pullback on Friday on rising tensions between the U.S. and China. Crude for January delivery plunged $2.94 or 5.1 percent to $55.17 a barrel, ending at its lowest closing level in a month.

Closer to home, South Korea will see October numbers for consumer prices later this morning; in September, overall inflation added 0.4 percent on month and fell 0.4 percent on year and core CPI fell 0.4 percent on month and gained 0.5 percent on year.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT