South Korea Bourse Tipped To Extend Monday's Losses
(RTTNews) - The South Korea stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had advanced almost 30 points or 1.3 percent. The KOSPI now rests just above the 2,340-point plateau and the losses may accelerate on Tuesday.
The global forecast for the Asian markets is broadly negative thanks to a renewed surge in coronavirus cases and lockdown measures around the globe. The European and U.S. markets were sharply lower and the Asian markets are tipped to open in similar fashion.
The KOSPI finished modestly lower on Monday following losses from the oil and chemical companies, gains from the automobile producers and mixed performances from the financials and technology stocks.
For the day, the index lost 16.90 points or 0.72 percent to finish at 2,343.91 after trading between 2,342.58 and 2,374.50. Volume was 803 million shares worth 11.29 trillion won. There were 759 decliners and 119 gainers.
Among the actives, Shinhan Financial skidded 1.28 percent, while KB Financial collected 0.36 percent, Hana Financial sank 0.91 percent, Samsung Electronics gained 0.33 percent, LG Electronics shed 0.56 percent, SK Hynix dropped 0.83 percent, Samsung SDI tumbled 1.65 percent, LG Chem shed 0.62 percent, Lotte Chemical plummeted 4.22 percent, S-Oil dipped 0.34 percent, SK Innovation plunged 3.66 percent, POSCO retreated 0.91 percent, SK Telecom declined 1.89 percent, KEPCO tanked 2.11 percent, Hyundai Motor accelerated 2.69 percent and Kia Motors surged 3.68 percent.
The lead from Wall Street is bleak as stocks opened firmly lower on Monday and saw the losses accelerate as the day progressed - extending last week's losses.
The Dow plummeted 649.93 points or 2.29 percent to finish at 27,685.64, while the NASDAQ dropped 189.34 points or 1.64 percent to end at 11,358.94 and the S&P 500 sank 64.42 points or 1.86 percent to close at 3,400.97.
The sell-off on Wall Street comes amid concerns about a record resurgence in coronavirus cases, while White House officials say the pandemic can't be controlled and the administration would instead focus on vaccines and therapeutics.
The spike in new coronavirus cases comes as lawmakers in Washington remain at an impasse over a new stimulus bill. Negotiations continue, but traders appear pessimistic that an agreement on a new relief package will be reached before next week's elections.
Adding to the negative sentiment, the Commerce Department reported an unexpected slump in new home sales last month.
Crude oil prices moved lower in response to the bad news, with West Texas Intermediate sinking $1.17 or 2.94 percent to $38.55.
Closer to home, South Korea will release an advance estimate for Q3 gross domestic product later this morning. GDP is expected to add 1.7 percent on quarter and fall 1.9 percent on year after sinking 3.2 percent on quarter and 2.7 percent on year in the three months prior.
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