(RTTNews) – The South Korea stock market on Friday halted the two-day slide in which it had stumbled almost 40 points or 1.8 percent. The KOSPI now rests just above the 2,410-point plateau although it’s likely to face renewed selling pressure on Monday.
The global forecast for the Asian markets is soft with continued pressure expected on the technology stocks, along with concerns over the economic recovery. The European and U.S. markets were down on Friday and the Asian markets are tipped to follow that lead.
The KOSPI finished slightly higher on Friday following gains from the chemical companies, weakness from the financials and automobile companies and a mixed bag from the technology stocks.
For the day, the index added 6.23 points or 0.26 percent to finish at 2,412.40 after trading between 2,396.33 and 2,417.81. Volume was 744 million shares worth 13.7 trillion won. There were 433 decliners and 416 gainers.
Among the actives, Shinhan Financial dropped 0.70 percent, while KB Financial lost 0.53 percent, Hana Financial retreated 1.05 percent, Samsung Electronics shed 0.34 percent, LG Electronics plunged 1.74 percent, SK Hynix jumped 1.82 percent, LG Display gained 0.31 percent, LG Chem spiked 3.26 percent, Lotte Chemical soared 2.44 percent, S-Oil sank 0.73 percent, SK Innovation tanked 1.92 percent, POSCO perked 1.05 percent, KEPCO rose 0.24 percent, Hyundai Motors tumbled 1.63 percent, Kia Motors skidded 1.44 percent and SK Telecom was unchanged.
The lead from Wall Street is negative as stocks initially showed a lack of direction on Friday but fell firmly under pressure as the day progressed, extending recent losses.
The Dow dropped 244.58 points or 0.88 percent to finish at 27,657.42, while the NASDAQ skidded 117.02 points or 1.07 percent to end at 10,793.28 and the S&P 500 fell 37.54 points or 1.12 percent to close at 3,319.47. For the week, the Dow fell 0.1 percent and the NASDAQ and S&P both sank 0.6 percent.
The weakness on Wall Street was due to a continued slump by technology stocks, with tech giant Apple (AAPL) showing a significant drop. Big-name tech companies like Google parent Alphabet (GOOGL), Amazon (AMZN), and Microsoft (MSFT) also posted notable losses.
Traders also expressed concerns for the economic outlook following the Federal Reserve’s latest monetary policy announcement and economic assessment. With the elections less than two months away, lawmakers seem unlikely to pass another stimulus bill to help the economy recover from the coronavirus pandemic.
In economic news, the Conference Board noted a continued increase in its leading U.S. economic indicators in August. Also, the University of Michigan saw a bigger than expected improvement in consumer sentiment in September.
Crude oil futures settled higher on Friday as prices edged up following a sharp drop in U.S. crude stockpiles and OPEC’s move to press for better compliance with output cuts. West Texas Intermediate Crude oil futures for October ended higher by $0.14 or 0.3 percent at $41.11 a barrel.
A Global Asset Management Seoul Korea Magazine