The South Korea stock market has moved lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 150 points or 5 percent. The KOSPI now sits just above the 3,090-point plateau although it figures to bounce higher again on Tuesday.
The global forecast for the Asian markets is upbeat, supported by rising crude oil prices and vaccine optimism. The European and U.S. markets were up and the Asian bourses figure to follow that lead.
The KOSPI finished modestly lower on Monday as losses from the technology stocks and automobile producers were mitigated by support from the financials and mixed performances from the oil and chemical companies.
For the day, the index dropped 29.39 points or 0.94 percent to finish at 3,091.24 after trading between 3,085.59 and 3,128.54. Volume was 1.3 billion shares worth 19.1 trillion won. There were 458 decliners and 390 gainers.
Among the actives, Shinhan Financial surged 3.46 percent, while KB Financial collected 1.58 percent, Hana Financial soared 3.04 percent, Samsung Electronics shed 0.60 percent, LG Electronics sank 0.63 percent, SK Hynix tumbled 1.96 percent, Samsung SDI lost 0.65 percent, LG Chem tanked 3.70 percent, Lotte Chemical rallied 4.93 percent, S-Oil spiked 7.51 percent, SK Innovation cratered 7.40 percent, POSCO perked 2.09 percent, SK Telecom retreated 2.51 percent, KEPCO accelerated 2.12 percent, Hyundai Motor plunged 6.21 percent and Kia Motors plummeted 14.98 percent.
The lead from Wall Street is positive as stocks opened higher on Monday and picked up steam as the day progressed, sending the major averages to fresh record closing highs.
The Dow jumped 237.52 points or 0.76 percent to finish at 31,385.76, while the NASDAQ advanced 131.35 points or 0.95 percent to end at 13,987.64 and the S&P 500 gained 28.76 points or 0.74 percent to close at 3,915.59.
The support on Wall Street came as a slowdown in the spread of the coronavirus in different parts of the world and improved vaccine rollout efforts have helped generate continued buying interest.
Traders also remain optimistic about the outlook for the global economy and the likelihood of additional U.S. fiscal stimulus as Democrats have taken the first steps toward passing President Joe Biden’s $1.9 trillion relief package without Republican support.
Crude oil prices moved up sharply on Monday, lifted by forthcoming production cuts and growing optimism for stimulus from the Biden administration. West Texas Intermediate Crude oil futures for March closed higher by $1.12 or 2 percent at $57.97 a barrel.
Market Analysis
South Korea Bourse May Reverse Monday’s Losses
2021-02-08 23:00:06
