Seoul Shares Observing On IMF Projections
South Korea Stock Market holiday yesterday with their South Korean people voting for the country’s parliamentary elections.
At the close of stock market trading on Tuesday South Korea, the Kospi index closed up 10.95 points, or 0.56 percent, at 1981.32. Strengthening Kospi stocks rise compelled big capital Seoul bourse.
As for the Kospi index futures tracked up 1.55 points or 0.64% at 244.20, up from its previous close at 242.65.
Holidays on the previous day provides an opportunity for investors in South Korean stock exchange is to observe the movement of global markets and economic indicators that can be considered to become active in stock trading tomorrow.
Strengthening Asian markets on the day yesterday, where all the major indices Asian region closed in the positive zone can provide positive sentiment for strengthening the Seoul bourse.
Likewise rebound of the Chinese export data can give a positive sentiment for the next Kospi index trading.
But there are several other important indicators that need to be considered for trade prospects Seoul stocks further.
Data released last night the US March Retail Sales which indicated increased from the previous negative results. If these results are realized, it will give positive results for Wall Street.
However, it should be observed other key data, the night before the data will also be released weekly US crude inventories by the EIA, which is indicated to increase from the previous results. If these results are realized, it will depress oil prices, which affect tapping the global market also.
Meanwhile, from within the country itself there are negative sentiment that cuts South Korea’s economic growth projections by the IMF.
The IMF expects growth to South Korea in 2016 and 2.7 percent in 2017 from 2.9 per cent, down from a previous forecast respectively 2.9 percent and 3.2 percent. The decline was influenced slowdown in China that has been weighing on the country’s fourth largest economy in Asia.
However, the projection is pushed by South Korean Finance Minister. Minister of Finance of South Korea, Yoo Il-ho, the IMF projection responds by telling yesterday that the country’s economy is expected to grow 3 percent in 2016. Yoo add it offers sufficient capacity to cope with the short-term uncertainty.
Technically,
Resistance: 249.00 249.65 250.25 Prev. High / Low: 248.75 / 247.10
Support: 247.00 247.60 248.10 Running Price: 248.65
Comment: For intraday trade today suggest Sell at the level of 249.50 stop and reversal during a break above the 249.70 level targets at the level of 247.80 and target of reversal at the level of 250.50.
Oil Weakens After Touch Highest
After touching its highest level in 2016, oil slipped 0.2% due to the release of data varied by the US government, which showed crude stocks rose a higher-than-expected increase in gasoline demand, and a decrease in production quantities.
Energy Information Administration reported US crude stockpiles rose 6.6 million barrels last week, becoming 536.5 million barrels. The increase was larger than the American Petroleum Institute report of 6.2 million barrels.
Gasoline inventories fell 4.2 million barrels to 239.76 million, while analysts expected a decline of 1.4 million barrels. The decline in gasoline inventories was slightly dampen the negative impact of the increase in crude oil stocks.
While US oil production for the first time since the end of 2014 down to below 9 million barrels per day. The decline is consistent with the reduced number of rigs operating in the US.
Oil potentially depressed if penetrated support at 40.80, but still be bullish if it survives at the top of the area.
Technically,
Resistance: 41.70 42.10 42.70 High / Low: 41.78 / 41.28
Support: 41.00 40.50 39.50 Running Price: 41.31
Comment: For intraday trade today suggest Sell 41.90 stop and reversal during a break above the 42.20 level targets at the level of 40.20 and target of reversal at the level of 43.00.
