KOSPI Expected To Get Hammered Again On Tuesday

(RTTNews) - The South Korea stock market has moved lower in five straight sessions, sinking more than 165 points or 6 percent along the way. Now at a 19-month closing low, the KOSPI rests just above the 2,500-point plateau and there is no relief in sight when the market opens on Tuesday.

The global forecast for the Asian markets is broadly negative on fears of n economic slowdown and concerns over the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian markets are expected to follow that lead.

The KOSPI finished sharply lower on Monday with damage across the board, particularly among the technology, oil and chemical companies.

For the day, the index tumbled 91.36 points or 3.52 percent to finish at the daily low of 2,504.51 after peaking at 2,550.32. Volume was 622.42 million shares worth 9.61 trillion won. There were 881 decliners and 42 gainers.

Among the actives, Shinhan Financial sank 3.91 percent, while KB Financial shed 2.89 percent, Hana Financial lost 2.83 percent, Samsung Electronics tumbled 2.66 percent, Samsung SDI slid 1.96 percent, LG Electronics gave away 5.37 percent, SK Hynix slumped 4.35 percent, Naver plummeted 5.93 percent, LG Chem tanked 3.60 percent, Lotte Chemical was down 3.38 percent, S-Oil fell 2.06 percent, SK Innovation stumbled 2.66 percent, POSCO surrendered 3.94 percent, SK Telecom fell 1.97 percent, KEPCO declined 3.52 percent, Hyundai Motor plunged 5.15 percent and Kia Motors dropped 3.88 percent.

The lead from Wall Street is brutal as the major averages opened sharply lower on Monday and only got worse as the day progressed, ending deep in the red.

The Dow plummeted 876.05 points or 2.79 percent to finish at 30,516 billion baht, while the NASDAQ plunged 530.80 points or 4.68 percent to close at 10,809.23 and the S&P 500 dropped 151.23 points or 3.88 percent to close at 3,749.63.

The extended sell-off on Wall Street reflected lingering concerns about inflation and the outlook for interest rates after last Friday's report showing a jump in consumer prices.

The Federal Reserve is scheduled to announce its latest monetary policy decision on Wednesday, with the central bank expected to continuing raising interest rates in an effort to combat inflation.

While the Fed's rate hikes have been widely anticipated for months, traders seem increasingly concerned tighter monetary policy could trigger a period of stagflation or an outright recession.

Crude oil futures rebounded from early losses and settled modestly higher on Monday as concerns about global supplies outweighed demand worries. West Texas Intermediate Crude oil futures for July ended higher by $0.26 or 0.2 percent at $120.93 a barrel.