Losing Streak Likely To Continue For South Korea Shares

(RTTNews) - The South Korea stock market has finished lower in consecutive trading days, sinking nearly 90 points or 3.8 percent along the way. The KOSPI now rests just above the 2,330-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets calls for continued consolidation, with energy, steel and financial stocks likely to lead the way lower. The European and U.S. markets were down and the Asian markets are tipped to follow suit.

The KOSPI finished sharply lower on Thursday following losses from the financials, technology stocks and oil and chemical companies, although the automobile producers were up on bargain hunting.

For the day, the index tumbled 45.35 points or 1.91 percent to finish at 2,332.64 after trading between 2,332.59 and 2,368.57. Volume was 506 million shares worth 8.7 trillion won. There were 699 decliners and 183 gainers.

Among the actives, Shinhan Financial declined 2.11 percent, while KB Financial rose 0.10 percent, Hana Financial skidded 1.38 percent, Samsung Electronics tumbled 1.72 percent, LG Electronics weakened 2.65 percent, SK Hynix tanked 3.19 percent, Naver retreated 2.64 percent, LG Chem slumped 2.64 percent, Lotte Chemical cratered 2.96 percent, S-Oil plunged 3.70 percent, SK Innovation plummeted 4.00 percent, POSCO surrendered 1.50 percent, SK Telecom stumbled 1.89 percent, KEPCO advanced 0.89 percent, Hyundai Motor jumped 2.85 percent and Kia Motors added 0.52 percent.

The lead from Wall Street is negative as the major averages opened sharply lower on Thursday, made back some ground as the day progressed but still ended well in the red.

The Dow dropped 253.88 points or 0.82 percent to finish at 30,775.43, while the NASDAQ tumbled 149.16 points or 1.33 percent to end at 11,028.74 and the S&P 500 sank 33.45 points or 0.88 percent to close at 3,785.38.

The early sell-off on Wall Street came amid lingering concerns about the global economic outlook and the possibility of a recession. Central bank chiefs have reaffirmed their resolve to pare inflation despite threats to economic growth.

A Commerce Department report provided further evidence of an economic slowdown, showing that personal spending increased less than expected in May.

Crude oil prices moved sharply lower Thursday, extending the pullback seen in the previous session on lingering concerns about the outlook for demand amid the possibility of a recession. West Texas Intermediate for August delivery plunged $4.02 or 3.7 percent to $105.76 a barrel.

Closer to home, South Korea will release June figures for imports, exports and trade balance later today. Imports are expected jump 22.6 percent on year, slowing from 32.0 percent in May. Exports are called higher by an annual 3.8 percent, down sharply from 21.3 percent in the previous month. The trade deficit is pegged at $4.83 billion following the $1.71 billion shortfall a month earlier.