Mild Upside Seen For South Korea Stock Market

(RTTNews) – Ahead of Monday’s holiday for Memorial Day, the South Korean stock market had bounced higher again on Friday, one day after snapping the three-day winning streak in which it had jumped more than 70 points or 2.8 percent. The KOSPI now rests just above the 2,670-point plateau and it may tick higher again on Tuesday.

The global forecast for the Asian markets suggests mild support thanks to bargain hunting and supported by crude oil prices. The European and US markets were modestly higher and the Asian bourses are tipped to open in similar fashion.

The KOSPI finished modestly higher on Friday following gains from the financials, chemicals and industrials, although the automobile producers were soft.

For the day, the index added 11.66 points or 0.44 percent to finish at 2,670.65 after trading between 2,663.00 and 2,681.51. Volume was 552.2 million shares worth 7.45 trillion won. There were 506 gainers and 336 decliners.

Among the actives, Shinhan Financial collected 0.24 percent, while Kakao Bank spiked 3.26 percent, Samsung Electronics perked 0.15 percent, Naver dropped 0.86 percent, LG Chem rallied 2.63 percent, Lotte Chemical strengthened 1.47 percent, S-Oil and KEPCO both advanced 0.87 percent, SK Innovation soared 4.64 percent, Hyundai Heavy surged 5.86 percent, Daewoo Shipbuilding gained 0.67 percent, POSCO perked 0.69 percent, SK Telecom improved 0.71 percent, Hyundai Motor eased 0.27 percent, Kia Motors tumbled 1.76 percent and KB Financial, Hana Financial, SK Hynix, Samsung SDI and LG Electronics were unchanged.

The lead from Wall Street ends up positive as the major averages opened sharply higher on Monday but faded throughout the session, although they still managed to finish with mild gains.

The Dow added 16.08 points or 0.05 percent to finish at 32,915.78, while the NASDAQ gained 48.64 points or 0.40 percent to close at 12,061.37 and the S&P 500 rose 12.89 points or 0.31 percent to end at 4,121.43.

The early strength on Wall Street came as traders picked up stocks at reduced levels following the sharp pullback last Friday.

Strength in overseas markets has carried over on Wall Street amid reports of a possible US tariff cut on Chinese goods.

But traders may be reluctant to take long positions ahead of consumer price inflation data due out later in the week. The numbers will be in the spotlight as traders focus on the Federal Reserve’s monetary policy tightening.

Crude oil futures pared early gains and settled lower on Monday after Saudi Arabia substantially raised crude prices for July. West Texas Intermediate Crude oil futures for July ended lower by $ 0.37 or 0.3 percent at $ 118.50 after climbing to $ 121 a barrel earlier in the session.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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