Bargain Hunting Could Boost South Korean Stock Market
(RTTNews) – The South Korean stock market ended lower in three consecutive sessions, falling more than 150 points or 5% along the way. Now at its lowest closing level this year, KOSPI sits just above the 2,900 point plateau despite falling behind for support on Thursday.
Global forecasts for Asian markets are mixed to higher, with a bargain hunt likely for oversold exchanges – although falling crude oil prices may cap the rise. European markets were down and US stock markets were mixed and Asian markets should follow this latest lead.
KOSPI ended sharply lower on Wednesday with damage across the bard – particularly oil, financial and tech stocks.
For the day, the index plunged 53.86 points or 1.82% to end at 2,908.31 after trading between 2,908.30 and 2,993.47. The volume was 887.63 million shares valued at 15.4 trillion won. There were 780 declining and 118 winners.
Among assets, Shinhan Financial fell 0.51%, while KB Financial fell 1.09%, Hana Financial slipped 0.44%, Samsung Electronics slipped 1.25%, LG Electronics lost 2.83%, SK Hynix fell 1.43%, Naver gained 0.67%, LG Chem lost 0.54%, Lotte Chemical improved 0.64%, S-Oil fell 0.67% 0.89%, SK Innovation plunged 3.58%, POSCO was down 1.55%, SK Telecom and KEPCO both fell 1.72%, Hyundai Motor was up 0.26% and Kia Motors fell 3.98%.
Wall Street’s lead is murky as major averages opened sharply lower on Wednesday, but a late rally saw the Dow and S&P end in positive territory.
The Dow Jones climbed 102.32 points or 0.30% to close at 34,416.99, while the NASDAQ lost 64.79 points or 0.44% to close at 14,501.91 and the S&P 500 a increased 6.51 points or 0.15% to end at 4,363.55.
The turnaround on Wall Street came on the news that Senate Minority Leader Mitch McConnell, R-Ken., Has offered to allow a temporary extension of the debt limit.
Debt limit concerns weighed on markets early in the session, as did lingering concerns about inflation and the Federal Reserve’s cutbacks in stimulus.
In economic news, payroll processor ADP noted stronger than expected private sector job growth in September. The Labor Department is expected to release its more closely watched monthly employment report on Friday, which includes both public and private sector jobs.
Crude oil prices fell on Wednesday, hitting multi-year highs amid concerns over slowing economic growth, high inflation and fears of rising interest rates from central banks. West Texas Intermediate crude oil futures for November fell $ 1.50 or 1.9% to $ 77.43 a barrel.
Closer to home, South Korea will release August figures for its current account later this morning; in July, the current account surplus was $ 8.21 billion.
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