Moving Kospi Gains; Cheil Debut, Industries shares soared almost 2-fold
In trading on the stock exchange today South Korea appears to have started a rebound in the benchmark Kospi index (18/12). Seoul shares rose supported by the performance of other stock exchanges in Asia are also strengthened.
The rise in Asian stock markets today can not be separated from the positive performance on Wall Street. At the end of trading US stocks posted gains. The Dow suffered its biggest rise during the year after the energy sector rally. Fed decided to extend the low interest rates.
Leading stocks in Seoul shares rise observed. Posco posted an increase of 1.4 percent. Samsung Electronics gained 0.5 percent today. Stock price retailer Shinsegae and E-Mart was not affected by the decline in operating profit in November. Both the retailer shares respectively increased by 0.5 and 0.7 percent.
Stock price Cheil Industries, which is part of the Samsung Group holding seems to experience a sharp increase nearly 100 percent on its trading debut today, up from its IPO price. IPO shares is said to be the third largest ever in South Korea and experiencing over-subscribed 195 times.
This morning spot index Kospi rebounded quite significant. The spot index increased by 9.90 points or 0:52 per cent to 1909.98 points.
Kospi 200 index futures dilated at position 244.75 points this morning. The futures index increased significantly by 215 points compared to the close of trading yesterday.
Analyst estimates that the movement in the stock market index futures trade today will experience a rebound limited. Currently Kospi has entered into a bearish trend. Yet to be confirmed whether the rebound this morning will be able to bring Kospi into a solid bullish pattern.
Kospi index futures will test the resistance level daily in position 245.50 and 246.00 points. While the level of support that will be encountered daily are 242.80 and 242.30 points. Technical indicators parabolic SARS showed that the Kospi is currently in a negative pattern.
Technically, the index on the trading session today, Thursday (18/12) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 241.25 and 240.10. If it fails at 243.00, then the next index is expected to tend to retest the resistance level of 244.10 and continued until the possibilities are in the 246.25 area.
Sterling Slips Post BoE Minutes
Sterling turned lower versus the US dollar on Wednesday after the Bank of England meeting minutes of December shows a comparison of the votes 7-2 to keep interest rates at a record low. BoE policy makers argue wage growth in the UK that looks “promising” still not enough to spur concerns about medium-term inflation outlook.
While Sterling was able to resume appreciation against the euro after data showed UK unemployment rate steady at its lowest level since 2008.
“Most investors seem to be disappointed with the results of voting that do not show a change,” said Neil Jones, head of hedge fund sales at Mizuho Bank Ltd. in London. “With most markets still expect a rate hike in the next year, the votes in the voting should be able to start to rise now be 6-3 or even 5-4. But we are still stuck at 7-2.”
Technically, the trading session today, Thursday (18/12), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5525 and 1.5470 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5578, then the other alternative scenario that Pound chance to test resistance in 1.5600 and 1.5650 area.
FOMC: Gold Rises, Investors Worry Russia Riots
Gold traded higher prior to the decision of the Federal Reserve, triggered by falling oil prices are falling and chaos in Russia.
Spot gold in February delivery at $ 1.197.20, in the low $ 1.194.70 support level and high-level resistance $ 1.203.00.
Economists forecast the Russian currency crisis and the decline of oil will not stop for policymakers to keep interest rates low. Previous gold rose as much as 2.5 percent before Rubel encouraged speculation that the nation can sell gold.
Oil traded near a five-year low driven from Russia who insists will keep oil production in the next year. Silver rose 1 percent to $ 15.8837 an ounce in London, after falling 8 percent in the previous three days. Platinum rose 0.4 percent to $ 1.203 per ounce. Palladium rose 0.6 percent to $ 787 per ounce.
Technically, gold in today’s trading session on Thursday (18/12) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1190.10 and re-test the maximum level of 1185.73. However, if the price of gold is able to break and hold above 1193.60, the estimated price of gold could potentially test the 1194.40 and 1199.72 resistance.
