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KOSPI: Strong Resistance Expected At 2,950

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The South Korea stock market had climbed higher in six straight sessions, advancing more than 200 points or 7.5 percent to a fresh record closing high. The KOSPI now sits just above the 2,940-point plateau and it's overdue for consolidation on Tuesday.

The global forecast for the Asian markets is soft, with several regional bourses ripe for profit taking, while an uptick in coronavirus cases may fuel the weak sentiment. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KOSPI finished sharply higher on Monday following gains from the technology stocks and oil and chemical companies, although the financials were soft.

For the day, the index surged 70.98 points or 2.47 percent to finish at 2,944.45 after trading between 2,869.11 and 2,946.54. Volume was a record 1 billion shares worth 24.7 trillion won. There were 500 gainers and 376 decliners.

Among the actives, Shinhan Financial skidded 1.56 percent, while KB Financial tanked 2.19 percent, Hana Financial plunged 3.04 percent, Samsung Electronics jumped 2.47 percent, LG Electronics gained 5.19 percent, SK Hynix soared 6.33 percent, Samsung SDI surged 6.85 percent, LG Chem spiked 7.89 percent, Lotte Chemical climbed 1.27 percent, S-Oil jumped 1.59 percent, SK Innovation skyrocketed 21.58 percent, POSCO perked 0.37 percent, SK Telecom shed 0.42 percent, KEPCO tumbled 1.82 percent, Hyundai Motor accelerated 8.07 percent and Kia Motors rallied 2.56 percent.

The lead from Wall Street is broadly negative as stocks shook off a steady start on Monday and headed sharply lower as the day progressed, cutting into recent gains.

The Dow tumbled 382.59 points or 1.25 percent to finish at 30,223.89, while the NASDAQ dropped 189.83 points or 1.47 percent to end at 12,698.45 and the S&P 500 sank 55.42 points or 1.48 percent to close at 3,700.65.

Upward momentum to start the New Year contributed to the initial strength on Wall Street, although buying interest waned shortly after the open. The subsequent pullback partly reflected profit taking after the Dow and the S&P 500 reached new record intraday highs.

Traders also were reluctant to push stocks higher amid uncertainty ahead of two key Senate runoffs in Georgia later today. Their outcome will determine which party controls the Senate and could have a major impact on what President-elect Joe Biden is able to accomplish.

The sharp pullback reflected concerns about the recent spike in coronavirus cases in several parts of the world, with a new strain of the virus being detected in the U.S. for the first time. Other countries, including the United Kingdom and Japan, are taking strong lockdown measures.

On the U.S. economic front, the Commerce Department reported a continued increase in construction spending in November.

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