The South Korea stock market on Wednesday wrote a finish to the two-day winning streak in which it had collected almost 45 points or 1.5 percent. The KOSPI now rests just above the 3,025-point plateau and it may take further damage on Thursday.
The global forecast for the Asian markets suggests consolidation, due mainly to profit taking and sinking crude oil prices. The European and U.S. markets were down and the Asian bourses are predicted to open in similar fashion.
The KOSPI finished modestly lower on Wednesday following losses from the financial shares, technology stocks and chemical companies.
For the day, the index sank 23.59 points or 0.77 percent to finish at 3,025.49 after trading between 3,019.00 and 3,049.02. Volume was 598 million shares worth 10.1 trillion won. There were 626 gainers and 232 decliners.
Among the actives, Shinhan Financial tanked 2.83 percent, while KB Financial dropped 0.85 percent, Hana Financial tumbled 2.32 percent, Samsung Electronics retreated 1.41 percent, LG Electronics plunged 2.79 percent, SK Hynix shed 0.49 percent, Naver added 0.48 percent, LG Chem lost 0.60 percent, Lotte Chemical plummeted 4.33 percent, S-Oil advanced 0.95 percent, SK Innovation retreated 2.33 percent, POSCO sank 2.22 percent, KEPCO dipped 0.22 percent, Kia Motors rose 0.24 percent and Hyundai Motor and SK Telecom were unchanged.
The lead from Wall Street offers little clarity as the major averages took different paths on Wednesday. The NASDAQ opened higher and finished the same way, albeit barely. The Dow spent most of the session in the red and the S&P 500 hugged the unchanged line before both ended in negative territory.
The Dow dropped 266.19 points or 0.74 percent to finish at 35,490.69, while the NASDAQ rose 0.12 points or 0.00 percent to close at 15,235.84 and the S&P 500 fell 23.11 points or 0.51 percent to end at 4,551.68.
While a mixed reaction to the latest earnings news contributed to choppy trading, traders also looked to cash in on recent strength in the markets in late-day trading as the Dow and S&P eased from record highs.
Corporate earnings were mixed as companies like Twitter (TWTR) and General Motors (GM) disappointed, while Microsoft (MSFT) and Google parent Alphabet (GOOGL) beat the street.
On the U.S. economic front, the Commerce Department said durable goods orders pulled back by much less than expected in September.
Crude oil prices sank Wednesday after data showed a larger than expected increase in U.S. crude stockpiles last week. Oil prices were also weighed down by prospects of Iran freeing itself from U.S. sanctions and start selling oil to major importers again. West Texas Intermediate crude oil futures for December were down by $1.99 or 2.3 percent at $82.66 a barrel.
Market Analysis
Continued Consolidation Anticipated For South Korea Stocks
2021-10-27 23:00:10
