Korea stock prices, the world's largest drop in October
... greater than Argentina
https://japanese.joins.com/article/524/246524.html?servcode=300§code=310&cloc=jp|main|top_news
October 29, 2018 Chuo Nippo Japanese Edition
It turned out that Korea ’s stock index fell the most among
the world's major indexes in October.
The attractiveness of the Korean economy and the stock market has fallen,
leaving the Korean market for foreigners,
That is, it is pointed out that this is
because the "core passing" phenomenon has occurred.
According to the Korea Exchange, KOSDAQ closed at 663.07 on the 26th,
down 10.26% from the closing price of September 28 (822.27),
the last business day of last month.
It is the highest rate of decline among the world's major indexes
over the same period. The KOSPI (Korean Composite Stock Price Index)
also dropped 13.48% in the same period,
becoming the world's third decline rate following
the Taiwan Addition Index (-13.78%).
KOS DAQ and KOSPI down rates are Nikkei (-12.17%),
Hong Kong Hansen stock index (-11.05), France CAC 40 (-9.58%),
Germany DAX30 (-8.54%), Shanghai China Overall (-7.89%),
SENSEX (-7.94%), such as large index compared to the world countries.
Furthermore,
the economic crisis occurred and the rate of decline was higher than that
of Argentina's Merval index (-12.23%) supported
by the International Monetary Fund (IMF).
If the US and China stock markets fall a little, they will plunge,
and even if these stock markets rally, they will not rise so much.
China's Shanghai index surged 4.09% on the 22nd,
but KOSPI remained at a 0.25% rise.
The Shanghai index also rose on the 24th and 25th, but KOSPI fell.
Nasdaq rose 0.26 percent on the 22nd (local time),
but KOSPI plunged 2.57 percent on the 23rd.
The primary cause is that the sale of foreigners is unstoppable.
Foreigners have sold 4.5 trillion won (about 450 billion yen)
in record sales of 26.01 billion in October.
It is the largest since August 2015 (-4,295 billion won) three years ago.
Meanwhile,
the Korean stock market has been classified as a credible place
in emerging market stock markets.
There was also a relative recognition of safe assets.
However, such a thing was not seen at all in this plunging market.
Foreigners are completely turning their backs on the Korean stock market.
Of course, technical and external factors can not be ignored.
Mr. K Young Wook Future Asset Daewoo Research Center Director
"The export-oriented South Korea is classified as a country
that is particularly affected by the negative effects of the US-China trade war,
and the stock price seems to fall more sharply," he said.
The fact that pension funds are selling with a low investment rate
in the Korean stock market is also a major cause of the decline
in Korean stock prices.
However,
an internal factor, that is, the fact that the attractiveness of foreigners
to the Korean stock market is gradually diminishing, can not be denied.
The stock market is where to make investment decisions
by looking at the future value, not the current value of the investment.
However, various indicators on the Korean economy
do not show a bright future.
There are many views that this year's economic growth rate will fall significantly more than expected.
The achievement of the forecasted growth rate of 3.0% at the beginning
of the year is already a water bubble.
Not only the government's revised value of 2.9 percent,
but also the achievement of the forecast value of 2.7 percent,
which the Bank of Korea (BOK) revised downward twice, is unclear.
The outlook for the future is even worse.
Capital investment, an indicator for forecasting the future economy,
decreased by 4.7% in the July-September quarter.
Domestic demand is also sluggish.
According to the Bank of Korea,
the contribution to domestic demand growth
in the July-September quarter was -1.1%.
Domestic demand is an obstacle to growth.
Meanwhile, exports that have driven the Korean economy are also unstable.
Exports in September were $ 50.58 billion, down 8.2 percent
from the same month last year.
The results of individual companies are also sluggish.
These indicators make the future unclear and accelerate the withdrawal
of foreigners from the Korean stock market.
Experts agree that the Korean stock market should be made more attractive
to ease Korea Passing.
After all, in order to make the stock market attractive,
it is necessary to make the companies
that make up the stock market attractive.
Mr. Kim Hyun-ryol, who is the director of research
"If a company-centered growth strategy does not come out,
it is difficult for the stock market to invest in the future looking
at the value of the future"
"It is necessary to advance a balanced policy,
as the balance of economic policy (balance)
is broken and the balance of the stock market is broken."
It has also been pointed out that measures
to restore investment psychology should be prepared in the short term.
Head of Ko Tebon High Investment Securities Research Center
"The truth is that there is a perception that the government is not focusing
on the economy, considering only the North-South relationship,
but such perception can only cause unrest in the stock market.
You have to change the atmosphere of the stock market
by referring to the stock market revitalization proposal etc.
Said.
Meanwhile, on the other hand,
NH Investment Securities and Cape Investment Securities forecasted
that KOSPI could decline until 1960 and 1980 this week.
It changed the attitude in which the reference
to the 2000 split was avoided and recognized the possibility.
The industry has expressed concern that as early as 29 days
there is a 2000 break.
Related to this,
the Financial Committee, along with the Korea Exchange and
We held a "Financial market situation review meeting"
and decided to discuss measures.
On October 26, KOSDAQ closed at 663.07, down 19.36%
from the closing price of September 28 (822.27),
the last business day of last month .
It is the highest rate of decline among the world's major indexes over
the same period.
-KOSPI also dropped 13.48% in the same period,
becoming the world's third decline rate
following the Taiwan Addition Index (-13.78%).
・ If the US and China stock markets plunge even a little,
they will not rise so much even if these stock markets rally .
The primary cause is that the sale of foreigners is unstoppable .
・ Foreigners have recorded record sales of 4.5051 trillion won
(approximately 450 billion yen, approximately $ 3.9 billion )
by October 26.
It is the largest since August 2015 (4.295 trillion won) three years ago.
It is natural for hot money to escape from Korea .
With the US interest rate hike,
the interest rate differential between the US and Korea will only open .
Korea is likely to raise interest rates but is unlikely to move
from concerns about deteriorating economic conditions
and household debt .
In the medium- and long-term, the decline in growth potential
due to the declining birthrate and aging population
has become increasingly apparent .
Moreover, politically,
relations with the United States were extremely deteriorated .
BTS members famous for atomic bomb T-shirts
are crazy inside the bus
Videos leaked!
https://twitter.com/i/status/1062852872176451584
Overseas fans seem to be exactly the same
Suddenly overflowing with compliments of English praise. Creepy…
