South Korea Bourse Tipped To Extend Losing Streak

(RTTNews) - The South Korea stock market has finished lower in back-to-back trading days, sinking almost 40 points or 1.8 percent along the way. The KOSPI now rests just above the 2,405-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets is soft on concerns over the economic recovery following the COVID-19 pandemic. The European and U.S. markets were down and the Asian markets are tipped to open in similar fashion.

The KOSPI finished sharply lower on Thursday following losses from the technology stocks and oil and chemical companies, while the financials came in mixed. Automobile producers offered strong support for the second straight day.

For the day, the index tumbled 29.75 points or 1.22 percent to finish at 2,406.17 after trading between 2,398.69 and 2,437.02. Volume was 834 million shares worth 13.9 trillion won. There were 655 decliners and 200 gainers.

Among the actives, Shinhan Financial shed 0.52 percent, while KB Financial collected 0.13 percent, Samsung Electronics tanked 2.46 percent, SK Hynix advanced 0.86 percent, Samsung SDI dropped 0.89 percent, LG Chem plummeted 6.11 percent, Lotte Chemical sank 0.49 percent, S-Oil skidded 1.08 percent, SK Innovation lost 0.32 percent, POSCO perked 0.53 percent, SK Telecom gained 0.41 percent, KEPCO fell 0.24 percent, Hyundai Motor rose 0.27 percent, Kia Motors surged 3.74 percent and Hana Financial and LG Electronics were unchanged.

The lead from Wall Street is negative as stocks opened lower on Thursday and remained in the red all day, extending losses from the previous session.

The Dow lost 130.40 points or 0.47 percent to finish at 27.901.98, while the NASDAQ tumbled 140.19 points or 1.27 percent to end at 10.910.28 and the S&P 500 fell 28.48 points or 0.84 percent to close at 3,357.01.

The weakness on Wall Street continued after the Federal Reserve revealed plans to leave interest rates at near-zero levels for years to come - suggesting the economic recovery will not be as swift as many were hoping.

Complicating matters, U.S. lawmakers remain at an impasse over a new coronavirus stimulus bill for weeks, and the upcoming elections could make reaching a compromise more difficult.

Negative sentiment was generated in reaction to a report from the Labor Department showing first-time claims for U.S. unemployment benefits fell less than expected last week. Also, the Commerce Department said new residential construction pulled back more than expected in August.

Crude oil prices moved higher on Thursday on reports that OPEC and its allies plan to crack down on countries that failed to comply with output cuts. West Texas Intermediate Crude oil futures for October ended up $0.81 or 2 percent at $40.97 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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