Profit Taking May Weigh On KOSPI On Wednesday

(RTTNews) - The South Korea stock market has moved higher in back-to-back sessions, collecting more than 55 points or 1.9 percent along the way. The KOSPI now sits just above the 2,950-point plateau although the rally may stall on Wednesday.

The global forecast for the Asian markets is negative in rising geopolitical tensions in the Middle East. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The KOSPI finished slightly higher again on Tuesday as gains from the automobile producers and technology stocks were capped by profit taking in the financial sector.

For the day, the index rose 3.64 points or 0.12 percent to finish at 2,950.30 after trading between 2,925.79 and 2,998.62. Volume was 923 million shares worth 17.7 trillion won. There were 560 decliners and 324 gainers.

Among the actives, Shinhan Financial shed 0.50 percent, while KB Financial lost 0.65 percent, Hana Financial dipped 0.25 percent, Samsung Electronics strengthened 1.57 percent, Samsung SDI rose 0.24 percent, LG Electronics perked 0.28 percent, SK Hynix gained 0.40 percent, Naver slumped 1.43 percent, LG Chem improved 0.73 percent, Lotte Chemical plummeted 4.93 percent, SK Innovation retreated 1.30 percent, POSCO Holdings fell 0.58 percent, SK Telecom and Hyundai Mobis both were up 0.18 percent, KEPCO rallied 2.54 percent, Hyundai Motor jumped 1.74 percent and Kia Motors accelerated 2.15 percent.

The lead from Wall Street is weak as the major averages opened slightly lower on Tuesday but saw the losses accelerate as the day progressed, ending firmly under water.

The Dow stumbled 299.29 points or 0.70 percent to finish at 42,215.80, while the NASDAQ slumped 180.12 points or 0.91 percent to close at 19,521.09 and the S&P 500 sank 50.39 points or 0.84 percent to end at 5,982.72.

While reports hinting at an end to hostilities contributed to a rally on Monday, news that President Donald Trump left a G7 summit early to focus on the conflict has led to worries about further escalation.

The weakness on Wall Street also came after the release of a Commerce Department report showing U.S. retail sales fell by more than expected in the month of May.

Crude prices soared on Tuesday, with the conflict between Israel and Iran showing no sign of retreat. West Texas Intermediate crude for July delivery shot up by $3.07 to settle at $74.84 per barrel.