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[THE INVESTOR] Britain’s shocking decision to leave the European Union continued to torment Korean shares as they extended losses on June 27. The local currency also suffered an extended loss against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 14.54 points, or 0.80 percent, to 1,909.27 as of 10:15 a.m.
On June 24, global stock markets lost about US$2 trillion in value, with the country’s benchmark index, the KOSPI, plunging 3.09 percent.
On the same day, the Dow Jones industrial average dropped 611 points, or 3.4 percent, its biggest decline since August. The tech-heavy Nasdaq Composite index fell 4.12 percent to 4,707.98 points.
Global stock markets are widely expected to suffer increased volatility for the time being as uncertainty sparked by Brexit will make investors more risk averse and prefer safer assets, such as the dollar and the yen, analysts said.
They said the country’s main stock index may flirt with the 1,850-point level this week if foreigners continue to dump local stocks. Foreigners sold 146.73 billion won (US$124 million) on Friday and were net sellers of domestic stocks worth 30.38 billion won as of 9:50 a.m.
“There will be more selling (by foreigners) in the coming weeks as they seek more hedging to protect their assets by exiting from emerging markets,” Hana Financial Investment analyst Soh Jae-yong said.
Korea’s financial authorities held an emergency meeting earlier in the day to discuss measures on buffering the impact from Brexit on the local financial markets, expressing concerns about additional departures of EU member countries from the bloc and ensuing volatility.
But they expected a limited impact from the Brexit decision on the domestic market due to the relatively small trade volume and investment between Britain and Korea.
“The authorities have already devised manuals for dealing with Brexit woes, which might include a crash in the stock market and a rise in the outflow of foreign capital,” Financial Services Commission chairman Yim Jong-yong said.
“They will also come up with market stabilization measures in advance and immediately take necessary measures should market concerns exceed a certain level.”
Large-cap stocks declined across the board.
Samsung Electronics inched down 0.71 percent, leading cosmetics maker AmorePacific shed 0.60 percent, and No. 1 chemical company LG Chem fell 1.88 percent.
Among gainers, top automaker Hyundai Motor Co. rose 1.08 percent, and No. 1 mobile carrier SK Telecom gained 2.40 percent on bargain hunting.
The local currency was trading at 1,187.80 won against the US dollar, down 7.90 won from the previous session’s close.
(theinvestor@heraldcorp.com)
The benchmark Korea Composite Stock Price Index fell 14.54 points, or 0.80 percent, to 1,909.27 as of 10:15 a.m.
On June 24, global stock markets lost about US$2 trillion in value, with the country’s benchmark index, the KOSPI, plunging 3.09 percent.
On the same day, the Dow Jones industrial average dropped 611 points, or 3.4 percent, its biggest decline since August. The tech-heavy Nasdaq Composite index fell 4.12 percent to 4,707.98 points.
Global stock markets are widely expected to suffer increased volatility for the time being as uncertainty sparked by Brexit will make investors more risk averse and prefer safer assets, such as the dollar and the yen, analysts said.
They said the country’s main stock index may flirt with the 1,850-point level this week if foreigners continue to dump local stocks. Foreigners sold 146.73 billion won (US$124 million) on Friday and were net sellers of domestic stocks worth 30.38 billion won as of 9:50 a.m.
“There will be more selling (by foreigners) in the coming weeks as they seek more hedging to protect their assets by exiting from emerging markets,” Hana Financial Investment analyst Soh Jae-yong said.
Korea’s financial authorities held an emergency meeting earlier in the day to discuss measures on buffering the impact from Brexit on the local financial markets, expressing concerns about additional departures of EU member countries from the bloc and ensuing volatility.
But they expected a limited impact from the Brexit decision on the domestic market due to the relatively small trade volume and investment between Britain and Korea.
“The authorities have already devised manuals for dealing with Brexit woes, which might include a crash in the stock market and a rise in the outflow of foreign capital,” Financial Services Commission chairman Yim Jong-yong said.
“They will also come up with market stabilization measures in advance and immediately take necessary measures should market concerns exceed a certain level.”
Large-cap stocks declined across the board.
Samsung Electronics inched down 0.71 percent, leading cosmetics maker AmorePacific shed 0.60 percent, and No. 1 chemical company LG Chem fell 1.88 percent.
Among gainers, top automaker Hyundai Motor Co. rose 1.08 percent, and No. 1 mobile carrier SK Telecom gained 2.40 percent on bargain hunting.
The local currency was trading at 1,187.80 won against the US dollar, down 7.90 won from the previous session’s close.
(theinvestor@heraldcorp.com)
