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| On the afternoon of the 26th, the KOSPI index declined 86.74 points (2.8%) from the previous day to 3,012.95 on the display board of the dealing room at Hana Bank’s Myeongdong branch in Jung-gu, Seoul. The KOSPI plunged more than 2% on the 24th, and recovered directly after the collapse of the 3000 line a day after the collapse of the US stock market. 2021.2.26/News1 © News1 Reporter Seongcheol Lee |
The KOSPI index is showing a dizzying run-of-the-mill jump up and down 100p after a day is far away due to anxiety about a surge in interest rates from the US. Accordingly, the volatility index (VKOSPI), called the fear index, again broke the 30 line.
For the time being, the domestic stock market is expected to continue to undergo extreme volatility in line with the US Treasury Bond interest rate trend.
According to the Korea Exchange on the 28th, the volatility index on the 26th soared 3.42p (12.25%) from the previous day to 31.34. It has crossed the 30 line in 14 trading days since the 4th (32.06p). The fluctuation was the largest in about a month on the 28th of last month.
V KOSPI, called the’Fear Index’, represents the possibility of future fluctuations of the KOSPI 200, as expected by option market investors. V KOSPI rises when the volatility of the stock market increases, and it reacts more sensitively to declines than to rises in the index.
Previously, the V KOSPI soared to 35.73 last month when the KOSPI index soared and broke the 3100 line. Later this month, the KOSPI index moved sideways around the 3100 line and fell back to the 20s, and on the 16th it fell to 25.08.
Since then, the volatility of the KOSPI has risen again. In particular, the V KOSPI soared as the KOSPI index showed fluctuations of more than 100p for 3 consecutive trading days on the 24th and 26th.
Inflation anxiety arising from the surge in US interest rates is hitting the global stock market. Federal Reserve Chairman Jerome Powell recently attended a parliamentary hearing and began evolving concerns over monetary tightening, but on the 25th (local time), the US 10-year Treasury bond rate surged more than 10bp (1bp=0.01%), the highest since last year. It also exceeded 1.6% phosphorus. Afterwards, it returned a portion of the increase, recording 1.53%.
The New York stock market plunged in the same interest rate seizure. In particular, the Nasdaq index, centered on technology stocks, plunged 3.5%. The S&P 500 and Dow also fell 2.4% and 1.8%, respectively. In the aftermath, the KOSPI also fell by 3% on the 26th, falling to the 3000 line, returning the previous day’s surge.
Dae-hoon Han, a researcher at SK Securities, said, “Chairman Powell has dismissed concerns about inflation, but he hasn’t heard the weakening yet.” “The US 10-year Treasury bond rate broke the 1.5% psychological resistance line and caused the shrinking of investment sentiment. It will be inevitable to expand volatility according to the direction.”