Short Comment
Bank of Korea said the economic growth for second quarter this year is 1.1% QoQ, and 2.1% YoY. The number is bigger than those of last seven quarters after 3Q17 in Korea. The number could be not bad, but the market did not show nice play. Even though it recovered the down, KOPSI200 recorded -0.72% temporarily. On the other hands, HangSeng and NIKKEI225 had been red all day. Value of Korean Won and yields of Korean government bonds went down.
The problem could be private sector, taking -0.2% in the number. The government offset the minus by recording 1.3%. Investment for Construction and Equipment had increased compared with that of the last quarter, but it had decreased compared with that of last year. The central bank said one of the reasons for the number of 1.1% is the base effect, considering the growth of -0.4% for the last quarter.
Worsening performance of listed companies is showing the difficulty the private sector is going through. Listed companies are announcing their performance for the second quarter. The sum of their operating incomes for the quarter which are announced until now has decreased by 48% compared with those of the last year. Of course, we need to consider the income of SK Hynix (000660.KS) which decreased by 90% with deteriorating semiconductor market where the most of demand is from foreign buyers. Like the example of SK Hynix, the decreasing number is not just because of the regional situation, but also because of sluggish global economic situation. Recently, manufacturing indices in everywhere are disappointing the markets.
Bank of Korea said the economic growth for second quarter this year is 1.1% QoQ, and 2.1% YoY. The number is bigger than those of last seven quarters after 3Q17 in Korea. The number could be not bad, but the market did not show nice play. Even though it recovered the down, KOPSI200 recorded -0.72% temporarily. On the other hands, HangSeng and NIKKEI225 had been red all day. Value of Korean Won and yields of Korean government bonds went down.
The problem could be private sector, taking -0.2% in the number. The government offset the minus by recording 1.3%. Investment for Construction and Equipment had increased compared with that of the last quarter, but it had decreased compared with that of last year. The central bank said one of the reasons for the number of 1.1% is the base effect, considering the growth of -0.4% for the last quarter.
Worsening performance of listed companies is showing the difficulty the private sector is going through. Listed companies are announcing their performance for the second quarter. The sum of their operating incomes for the quarter which are announced until now has decreased by 48% compared with those of the last year. Of course, we need to consider the income of SK Hynix (000660.KS) which decreased by 90% with deteriorating semiconductor market where the most of demand is from foreign buyers. Like the example of SK Hynix, the decreasing number is not just because of the regional situation, but also because of sluggish global economic situation. Recently, manufacturing indices in everywhere are disappointing the markets.
Nevertheless, macroeconomic indices are attacking Korean stock market more severe than the other markets. Every stock index including S&P500, Eurostoxx50, NIKKEI225, and HangSeng is recording red nowadays, but KOSPI200 is in negative range alone. Tangled with geopolitical issues including Japanese trade issue and North Korean missiles, worsening economic indices are dragging regional stock market.
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