Ahead of Wednesday’s holiday for Election Day, the South Korea stock market had moved lower in three straight sessions, tumbling almost 130 points or 4.9 percent along the way. The KOSPI now rests just above the 2,620-point plateau although it figures to stop the bleeding on Thursday.
The global forecast is broadly positive on bargain hunting and easing inflation concerns after crude oil prices retreated sharply. The European and U.S. markets were firmly higher and the Asian bourses are tipped to open in similar fashion.
Adding to the positive sentiment, Yoon Suk-yeol has been elected South Korea’s next president, beating out Lee Jae-myung of the liberal Democratic Party in the closest race in the country’s history. Yoon, of the conservative People Power Party, is seen as pro-business and may give the markets a boost.
The KOSPI finished sharply lower again on Tuesday following losses from the financials, industrials and technology stocks.
For the day, the index sank 28.91 points or 1.09 percent to finish at 2,622.40 after trading between 2,605.81 and 2,647.18. Volume was 531 million shares worth 11.5 trillion won. There were 732 decliners and 148 gainers.
Among the actives, Shinhan Financial tanked 2.15 percent, while KB Financial plummeted 3.27 percent, Hana Financial surrendered 2.21 percent, Samsung Electronics shed 0.86 percent, LG Electronics lost 2.07 percent, SK Hynix retreated 1.26 percent, Naver sank 0.81 percent, Samsung SDI slumped 2.74 percent, LG Chem tumbled 2.14 percent, Lotte Chemical eased 0.26 percent, S-Oil declined 1.82 percent, SK Innovation skidded1.46 percent, POSCO plunged 3.15 percent, SK Telecom dipped 0.35 percent, KEPCO added 0.64 percent, Kia Motors dropped 2.11 percent and Hyundai Motor was unchanged.
The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday and stayed that way throughout the session.
The Dow surged 653.61 points or 2.00 percent to finish at 33,286.25, while the NASDAQ spiked 459.99 points or 3.59 percent to end at 13,255.55 and the S&P 500 soared 107.18 points or 2.57 percent to close at 4,277.88.
A pullback by commodities prices contributed to the rebound on Wall Street, as the recent surge in prices had led to worries about even higher inflation.
Oil prices plunged sharply on Wednesday, a day after recording their highest close in 14 years, after analysts said the U.S. and U.K. ban on Russian oil imports will be far less disruptive to global markets than a full international embargo. West Texas Intermediate Crude oil futures for April ended down by $15 or 12.1 percent at $108.70 a barrel.
The markets also benefited from bargain hunting, as traders looked to pick up stocks at reduced levels following the recent weakness.
Market Analysis
KOSPI May See Post-Election Boost On Thursday
2022-03-09 22:02:29
