Renewed Selling Pressure Expected For South Korea Shares

(RTTNews) - The South Korea stock market on Monday ended the four-day losing streak in which it had fallen almost 65 points or 2.7 percent. The KOSPI now rests just above the 2,345-point plateau although it figures to head south again on Tuesday.

The global forecast for the Asian markets is soft on doubts for stimulus to combat the rising number of coronavirus cases. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The KOSPI finished slightly higher on Monday following gains from the financials, weakness from the automobile producers and mixed performances from the technology, oil and chemical companies.

For the day, the index picked up 5.21 points or 0.22 percent to finish at 2,346.74 after trading between 2,344.77 and 2,364.25. Volume was 911 million shares worth 10.2 trillion won. There were 442 gainers and 394 decliners.

Among the actives, Shinhan Financial surged 3.76 percent, while KB Financial spiked 3.30 percent, Hana Financial collected 2.92 percent, Samsung Electronics advanced 0.84 percent, LG Electronics sank 0.89 percent, SK Hynix jumped 1.64 percent, Samsung SDI tumbled 1.67 percent, LG Chem plunged 3.91 percent, Lotte Chemical accelerated 2.29 percent, S-Oil rallied 2.12 percent, SK Innovation retreated 1.80 percent, POSCO soared 3.22 percent, SK Telecom dropped 0.85 percent, KEPCO skidded 1.61 percent, Hyundai Motor tanked 2.33 percent and Kia Motors retreated 0.95 percent.

The lead from Wall Street is broadly negative as stocks showed a lack of direction early in Monday's trade but headed firmly south as the day progressed.

The Dow tumbled 410.89 points or 1.44 percent to finish at 28,195.42, while the NASDAQ sank 192.67 points or 1.65 percent to close at 11,478.88 and the S&P 500 dropped 56.89 points or 1.63 percent to end at 3,426.92.

The weakness on Wall Street reflected concerns about whether lawmakers in Washington will reach an agreement on a new stimulus bill, with reports suggesting there remains an array of additional differences that must be addressed in a comprehensive manner in the next 48 hours.

In economic news, the National Association of Homebuilders said that homebuilder confidence climbed to a fresh record high in October versus expectations for no change.

Crude oil futures ended slightly lower on Monday, weighed down by lingering concerns about energy demand outlook due to rising coronavirus cases. West Texas Intermediate crude oil futures for November ended at $40.83 a barrel, down $0.05 or 0.1 percent at $40.83 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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