Renewed Consolidation Called For South Korea Shares

(RTTNews) - The South Korea stock market on Wednesday ended the two-day slide in which it had stumbled nearly 30 points or 1.3 percent. The KOSPI now rests just above the 2,345-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets suggests major consolidation due to surging coronavirus cases around the world. The European and U.S. markets were sharply lower and the Asian markets figure to follow suit.

The KOSPI finished modestly higher on Wednesday following gains from the financial shares, chemical companies and automobile producers.

For the day, the index added 14.42 points or 0.62 percent to finish at 2,345.26 after trading between 2,316.47 and 2,345.46. Volume was 695 million shares worth 8.8 trillion won. There were 615 gainers and 237 decliners.

Among the actives, Shinhan Financial surged 4.30 percent, while KB Financial collected 0.72 percent, Hana Financial advanced 0.96 percent, Samsung Electronics skidded 1.34 percent, LG Electronics perked 0.67 percent, SK Hynix added 0.36 percent, LG Chem jumped 1.58 percent, Lotte Chemical skyrocketed 6.71 percent, S-Oil eased 0.18 percent, POSCO tumbled 1.82 percent, SK Telecom retreated 1.29 percent, KEPCO fell 0.24 percent, Hyundai Motor gained 0.58 percent, Kia Motors spiked 1.70 percent and SK Innovation was unchanged.

The lead from Wall Street is brutal as stocks opened deep in the red on Wednesday and were hammered throughout the day, finishing sharply lower.

The Dow plummeted 943.24 points or 3.43 percent to finish at 26,519.95, while the NASDAQ plunged 426.48 points or 3.73 percent to end at 11,004.87 and the S&P 500 tumbled 119.65 points or 3.53 percent to close at 3,271.03.

The sell-off on Wall Street came amid continued concerns about a recent spike in coronavirus cases across the U.S. - which has averaged more than 70,000 new coronavirus cases a day over the past week. Twenty-nine states have set new records this month for the most new daily cases since the pandemic began in February.

Meanwhile, President Donald Trump has continued to downplay the pandemic in recent days, accusing the media of focusing too much on the disease ahead of next week's elections.

Lingering uncertainty about a new stimulus bill also weighed on Wall Street, with some analysts suggesting a victory by Joe Biden could make Republicans less likely to approve a new relief package until next year.

Crude oil futures ended sharply lower Wednesday, weighed down by data showing a notable increase in crude inventories, and worries about energy demand due to rising coronavirus cases. West Texas Intermediate oil futures for December ended down $2.18 or 5.5 percent at $37.39 a barrel.

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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