We cannot see the lowest point of the plunge: KOSPI200.

Short comment

Equities in everywhere keep going down. The trade war issue is not being relieved at all.

The attack targeted at China, from the US is dragging Korean market. The attacks against Huawei are dragging Korean national champions: Samsung Electronics (005930.KS) and SK Hynix (000660.KS). Chinense consumers were taking shares of 32% and 39% in revenues of SEC and SK Hynix respectively during the last year.

During May, Share prices of SEC and SK Hynix have gone down by 7% and 15% respectively to today. They are taking more than 25% in total market cap of KOSPI200.

Opinions about the trade war are various. Some players are saying that it is not a balking dog. The other ones are saying that it will be a trigger for the next crisis interwined with coming recession.

Of course, the proceeding uncertainty is not just because of the trade war. Another reason is too obvious: It is the last part of economic cycle. S&P500 may have room for additional rally, but the volatility during early this year did not make sense. Recent level is more appropriate for possible rally too.

Anyway, I still think that the real plunge is too early to come up. KOSPI200 will go down lower than 260 temporarily, but 260 could be the lowest point.