KOSPI Trading Weak; Bank, Auto Stocks Decline

 @ibtimes
on August 24 2009 11:26 PM

RTTNews - The Korean market is trading weak on Tuesday with the overnight flat close on Wall Street prompting investors to go in for some profit taking.

The Korean benchmark index KOSPI, despite a couple of attempts to bounce back into positive territory, is trading in the red at 1,599, down 13.2 points, or 0.82%, from its previous close.

Automobile and bank stocks are among the prominent losers. Technology stocks are also seen exhibiting weakness. However, oil stocks are trading firm, while steel and telecom stocks are exhibiting a mixed trend.

Among automobile stocks, Kia Motor and Hyundai Motor are down by 3% and 2.8%, respectively. Ssangyong Motors, however, is up in positive territory with a 6% gain.

In the technology space, LG Electronics is down by 3%, Samsung Electronics and LG Display LCD are down with modest losses, while Hynix Semiconductor is trading modestly higher.

Among bank stocks, Korea Exchange Bank, Shinhan Financial and KB Financial are down by 1.5% - 3%, while Woori Finance is trading lower by 0.6%.

Steel stocks Hyundai Steel and POSCO are trading flat. Among oil stocks, SK Holdings and S-Oil are up by 2% and 1%, respectively. KEPCO is down by about 1%.

Shipbuilders are trading mixed. Among airliners, Korea Airlines is up by 2.6% and Asiana Airlines is trading with a modest 0.7% gain.

Among other markets in the Asia-Pacific region, Shanghai and Hong Kong are trading sharply lower with their benchmark indices Shanghai Composite Average and Hang Seng drifting down by 3% and 1.5%, respectively. Australia, Indonesia, Japan, Taiwan and Singapore are also trading notably lower. The New Zealand market is trading modestly higher. Stock markets across the region had closed notably higher on Monday.

On Wall Street, stocks drifted lower after some early strength as market sentiment was slightly hit by comments from noted economist Nouriel Roubini about a possible double recession. Moving in a choppy manner in late session, the Dow ended the day with a small gain of 3.32 points at 9,509. The Nasdaq drifted down by 2.92 points to 2,018 and the S&P 500 ended 0.56 points down at 1,026.

Major European markets saw strong gains on Monday with the German DAX index and the U.K.'s FTSE 100 index both rising by 0.8%, while the French CAC 40 index gained 1%.

Crude oil edged higher on Monday amid hopes a global economic recovery will boost energy demand. Oil hit a 10-month intra-day high before easing. Light sweet crude for October closed at US$74.37 per barrel, up 48 cents on the session.

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