Kospi, below the 3000 line for the first time since January 29th
“Hong Kong, negative factors such as reduction in fiscal deficit and increase in transaction tax”
Photo = Getty Image Bank
The KOSPI index gave out 3000 lines. While government bond yields are rising every day, growing concerns about liquidity absorption in Greater China have been a negative factor.
On the 24th, the KOSPI index closed at 2994.98, down 75.11 points (2.45%) from the previous day. The index, which climbed to 3092.05 at the beginning of the market and tried to break through the 3100 line, fell sharply in the afternoon. It has only been 16 trading days since January 29 (2976.21) that fell below the 3000 line based on the closing price.
Investor sentiment sharply declined as bond yields in major countries rose day after day amid increased stock price burdens from the stock market rally from the beginning of the year. The 10-year Treasury bond rate once rose to around 1.39%, raising concerns about inflation.
In addition, concerns about the possibility of recovering liquidity in Greater China spread to the domestic stock market. According to the South China Morning Post (SCMP) that day, Hong Kong Finance Minister Paul Chan said he would adjust fiscal spending from HK$300 billion to HK$2576 billion. Reserves for payment are also expected to decrease from about HK$1 trillion last year to HK$92.7 billion at the end of March. In order to increase the government’s tax revenue, the stock transaction tax was also raised from 0.1% to 0.13%.
Accordingly, the Hong Kong Hang Seng Index is recording 29,557.47, down 1075.17 (3.51%) from the previous day. China’s Shanghai Composite Index is also trading at 2547.06, down 89.30 points (2.46%) over the same period.
Seo Jeong-hoon, a researcher at Samsung Securities, said, “As the Hong Kong Finance Minister revealed a reduction in the size of the fiscal deficit and an increase in the stock trading tax, the stock market in Greater China fell.” Concerns that there is a high possibility of negatively affecting the upside engine was reflected in the domestic stock market.”
“The domestic stock market also temporarily deviated from the 3,000 line, but it is not necessary to give it a great meaning,” he said. “It is highly likely to recover quickly given the basic strength (fundamental) such as corporate performance and exchange rates.”
(Photo = Getty Image Bank)
Individuals bought 553.7 billion won, while foreigners and institutions sold 4318 billion won and 127.1 billion won respectively. In the program trading, arbitrage trading net bought 29.1 billion won, but non-arbitrage trading net sold 421 billion won, showing a total selling advantage of 3919 billion won.
SK hynix(136,000 -1.81%)Wrote a new intraday report price, but eventually closed down. SK Hynix closed the deal at 136,000 won, down 2500 won (1.81%) from the previous day. During the intraday, the 52-week report price was newly written as it rose to 143,500 won. According to NH Investment & Securities, DRAM fixed transaction prices are expected to rise 13% in the second quarter of this year. At SK Hynix, the share of the semiconductor division in the entire business division is Samsung Electronics.(82,000 0.00%)It is higher and reacts more responsively to the DRAM industry.
SK Biopharm(122,000 -17.29%)Also plunged. SK Biopharm recorded 122,000 won, down 25,500 won (17.29%) from the previous day. It is the lowest based on the closing price since listing in July last year. The news that the majority shareholder sold part of the stake was bad news. On the same day, SK announced that it had sold part of SK Biopharm’s stake in an overtime mass sale (block deal). The stake in the sale is 8.6 million shares (about 1,1163 billion won). After disposal, SK’s stake in SK Biopharm is 64.02%. SK said that it sold its stake to secure investment funds to find new growth engines.
The KOSDAQ index also plummeted. KOSDAQ closed the deal at 906.31, down 30.29 points (3.23%) from the previous day.
The won-dollar exchange rate rose (weakened the value of the won). In the Seoul foreign exchange market, the won-dollar exchange rate ended at 1112.2 won, up 1.6 won from the previous day.
Lee Song-ryul, reporter of Hankyung.com [email protected]