KOSPI to plunge below 1800 points on Brexit: analysts

[THE INVESTOR] Analysts warned Britain’s vote to leave the European Union may further dampen Korean stock financial markets as panic gripped investors. On June 24, the country’s benchmark KOSPI shed 61.47 points, or 3.09 percent, to 1,925.24. Sidecar kicked in following the secondary KOSDAQ’s 6-percent plunge. Shocked investors dumped pounds, leading the value of sterling to slump to a 31-year low on currency markets. Other Asian markets including Japan’s Nikkei finished the day with big losses.

June 24, 2016

[ANALYST REPORT] SK Hynix: Easing supply glut

2Q estimates: sales of W3.76tr (+2.1% QoQ), OP of W445bn (-21.6% QoQ) Rebounding indicators, earnings to improve QoQ in 3Q ¨ Retain BUY for target price of W38,0002Q estimates: sales W3.76tr (+2.1% QoQ), operating profit W445bn (-21.6% QoQ)SK Hynix is forecast to post 2Q sales of W3.76tr (+2.1% QoQ, -18.9% YoY) and operating profit of W445bn (-21.6% QoQ, -67.7% YoY). We expect bit growth of 13% and ASP drop of 10%. Earnings should bottom out in 2Q. We expect operating profit of W549bn (+23.5% Qo

June 24, 2016

Woori Bank needs to sharply increase provisions to retain top rating

[THE INVESTOR] Woori Bank needs to set aside loan-loss provisions of 700 billion won (US$ 594 million) to maintain its credit rating of AAA, credit rating agencies said on June 24. Woori Bank’s BIS capital adequacy ratio declined to 13.5 percent as of the end of the first quarter, the lowest level among commercial banks. Due to its exposure to debt-laden shipping and shipbuilding companies, the ratio has been plunged from 15.5 percent to 13.7 percent during two years between 2013 and 2015. Accor

June 24, 2016