The South Korea stock market has finished higher in two straight sessions, collecting more than 30 points or 1.2 percent along the way. The KOSPI now rests just above the 2,625-point plateau although the rally is likely to stall on Thursday.
The global forecast for the Asian markets suggests consolidation on profit taking, with oil and retail stocks leading the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow that lead.
The KOSPI finished slightly higher on Wednesday following mixed performances from the technology stocks and industrials, while the financials were soft.
For the day, the index rose 5.54 points or 0.21 percent to finish at 2,625.98 after trading between 2,618.00 and 2,644.13. Volume was 813 million shares worth 9.39 trillion won. There were 504 decliners and 339 gainers.
Among the actives, Shinhan Financial dropped 0.83 percent, while Hana Financial eased 0.11 percent, Samsung Electronics improved 0.74 percent, Samsung SDI rallied 2.03 percent, LG Electronics fell 0.47 percent, SK Hynix advanced 0.89 percent, Naver added 0.36 percent, LG Chem climbed 1.39 percent, Lotte Chemical shed 0.76 percent, S-Oil tumbled 2.65 percent, POSCO perked 0.17 percent, SK Telecom tanked 2.81 percent, KEPCO sank 0.88 percent, Kia Motors slumped 0.82 percent and KB Financial, SK Innovation and Hyundai Motor were unchanged.
The lead from Wall Street is brutally negative as the major averages opened lower on Wednesday and saw the losses accelerate as the day progressed, ending deep in the red.
The Dow plummeted 1,164.52 points or 3.57 percent to finish at 31,490.07, while the NASDAQ plunged 566.37 points or 4.73 percent to close at 11,418.15 and the S&P 500 tumbled 165.17 points or 4.04 percent to end at 3,923.68.
Retail stocks led the markets lower, with the Dow Jones U.S. Retail Index plunging 7.7 percent to its lowest closing level in almost two years. Target (TGT) posted a particularly steep loss after the discount retailer reported quarterly earnings that missed expectations.
Substantial weakness was also visible among transportation stocks, as reflected by the 7.4 percent drop by the Dow Jones Transportation Average. Housing stocks also saw significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 4.6 percent.
In economic news, the Commerce Department noted a modest decrease in new residential construction and building permits in April.
Crude oil futures settled lower on Wednesday despite data showing a drop in crude inventories last week. A stronger dollar amid rising prospects of sharper interest rate hikes by the Federal Reserve also contributed to the decline. West Texas Intermediate Crude oil futures for ended lower by $2.81 or about 2.5% at $109.59 a barrel.
Market Analysis
South Korea Stock Market May Test Support At 2,600 Points
2022-05-18 23:00:15
