Plus   Neg

Rally Expected To Stall For South Korea Shares

The South Korea stock market moved higher in back-to-back trading days, collecting more than 20 points or 0.8 percent along the way. The KOSPI remains just above the 2,355-point plateau although investors figure to cash in on Tuesday.

The global forecast for the Asian markets is broadly negative thanks to heightening fears of a trade war and a drop in crude oil prices. The European and U.S. bourses were firmly in the red and the Asian markets are tipped to follow suit.

The KOSPI finished barely higher on Monday following gains from the financial shares, while the industrials and technology stocks were mixed.

For the day, the index added 0.66 points or 0.03 percent to finish at 2,357.88 after trading between 2,337.22 and 2,361.39. Volume was 407 million shares worth 5.56 trillion won. There were 531 gainers and 295 decliners.

Among the actives, Shinhan Financial climbed 1.03 percent, while KB Financial jumped 3.02 percent, Hana Financial collected 1.39 percent, Woori Bank was unchanged, SK hynix plummeted 5.25 percent, LG Electronics soared 3.28 percent, Samsung Electronics skidded 1.27 percent, Samsung Life shed 0.50 percent, SK Telecom tumbled 2.07 percent, LG Chem spiked 2.33 percent, POSCO surged 3.06 percent, Hyundai Steel advanced 3.09 percent, Hyundai Motor lost 0.77 percent and Kia Motors added 0.48 percent.

The lead from Wall Street is extremely weak as stocks showed a substantial move to the downside on Monday as the Dow closed lower for the ninth time in ten sessions.

The Dow tumbled 328.09 points or 1.33 percent to 24,252.80, the Nasdaq plunged 160.81 points or 2.091 percent to 7,532.01 and the S&P 500 slumped 37.81 points or 1.37 percent to 2,717.07.

Ongoing concerns about a global trade war fueled to the weakness on Wall Street after reports that President Donald Trump plans to ban Chinese companies from investing in U.S. technology firms and block additional tech exports to Beijing.

In economic news, the Commerce Department reported a bigger than expected rebound in new home sales in May.

Crude oil futures were lower Monday amid continued trade tensions and expectations for rising oil supplies. Also, the dollar further strengthened, denting most commodities as WTI oil for August fell 36 cents to $68.22 a barrel.

Closer to home, the Bank of Korea said this morning that its composite consumer sentiment index came in at 105.5 in June, down from 107.9 in May.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT