Additional Support Predicted For South Korea Shares

(RTTNews) - The South Korea stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day losing streak in which it had stumbled almost 30 points or 1.3 percent. The KOSPI now rests just above the 2,200-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is upbeat on optimism for a coronavirus treatment. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.

The KOSPI finished modestly higher on Wednesday following gains from the financials, technology stocks, automobile producers and chemical companies.

For the day, the index advanced 18.27 points or 0.84 percent to finish at 2,201.88 after trading between 2,190.66 and 2,216.97. Volume was 811 million shares worth 13.4 trillion won. There were 547 gainers and 291 decliners.

Among the actives, Shinhan Financial climbed 1.36 percent, while KB Financial gathered 1.57 percent, Hana Financial collected 1.46 percent, Samsung Electronics jumped 1.67 percent, LG Electronics surged 4.10 percent, SK Hynix rose 0.12 percent, LG Display gained 2.01 percent, LG Chem accelerated 1.87 percent, Lotte Chemical advanced 0.85 percent, S-Oil spiked 2.25 percent, SK Innovation plunged 3.52 percent, POSCO perked 1.08 percent, SK Telecom added 0.23 percent, KEPCO skidded 1.26 percent, Hyundai Motors skyrocketed 7.39 percent and Kia Motors soared 3.53 percent.

The lead from Wall Street is firm as stocks fluctuated on Wednesday maintained a positive bias before ending mostly higher.

The Dow jumped 227.51 points or 0.85 percent to finish at 26,870.10, while the NASDAQ gained 61.92 points or 0.59 percent to end at 10,550.49 and the S&P 500 rose 29.04 points or 0.91 percent to close at 3,226.56.

The continued strength on Wall Street came as upbeat news on the coronavirus vaccine front helped traders shrug off a record single-day spike in new Covid-19 cases in the U.S. Biotech firm Moderna (MRNA) said its experimental vaccine was safe and produced strong immune responses in all 45 patients in an early-stage human trial.

Upbeat earnings news from Goldman Sachs (GS) added to the positive sentiment, with the financial giant reporting much stronger than expected second quarter results.

Crude oil futures ended firmly higher Wednesday after data showed a marked decline in U.S. crude inventories last week. West Texas Intermediate crude oil futures for August ended up $0.91 or 2.3 percent at $41.20 a barrel, the highest settlement since March 6.

Closer to home, the Bank of Korea will wrap up its monetary policy meeting later this morning and then announce its decision on interest rates. The central bank is widely expected to keep its benchmark lending rate unchanged at the record low 0.50 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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