KOSPI 2.56%↓… KOSDAQ 3.91%↓
Won-dollar exchange rate rose by 9.3 won to 1311.1 won
Concerns over bank run in small and medium-sized U.S. banks continue
On the 14th, when the KOSPI and KOSDAQ markets plunged in the followingmath of the US Silicon Valley Bank (SVB) bankruptcy, the KOSPI index showed 2348.97, down 61.63 points (2.56%) from the previous trading day, on the display board of Hana Bank’s Dealing Room in Jung-gu, Seoul. The KOSDAQ index fell 30.84 points (3.91%) from the previous trading day to 758.05, and the won-dollar exchange rate closed at 1311.1 won, up 9.3 won from the previous trading day. Reporter Seong Dong-hoon
Global stock markets plummeted in the followingmath of the bankruptcy of Silicon Valley Bank (SVB) in the United States. As the sense of crisis grew that small and medium-sized U.S. banks might collapse serially, the KOSPI fell more than 2%, and the won-dollar exchange rate rose by nearly 10 won.
In the stock market on the 14th, KOSPI finished trading at 2348.97, down 61.63 points (2.56%) from the previous day. On this day, the KOSPI started at 2390.36, down 20.24 points (0.84%) from the battlefield, increasing the drop. The KOSDAQ closed at 758.05, down 30.84 points (3.91%) from the previous day.
In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1311.1 won per dollar, up 9.3 won from the previous day. On this day, the won-dollar exchange rate opened at 1298.1 won, down 3.7 won from the previous day, but soon turned upward.
Asian stock markets were mostly down on the day. Japan’s Nikkei 225 Index closed down 2.19% from the previous day’s close. Hong Kong’s Hang Seng Index is trading at a 2.19 percent drop from the previous day as of 2:31 p.m. local time. At the same time, China’s Shanghai Composite Index is also trading at a point down 0.47% from the previous day.
Kim Seok-hwan, a researcher at Mirae Asset Securities, said, “The US government is actively responding to the SVB bankruptcy, including policies to protect depositors, but liquidity concerns for small and medium-sized banks have emerged.”
The previous day, the domestic and foreign stock markets showed a somewhat calming effect due to the US government’s announcement on the 12th (local time) that it would protect all customer deposits of bankrupt SVB. Expectations that the U.S. Federal Reserve may freeze interest rates at the FOMC (Federal Open Market Committee) in March following the bankruptcy of the SVB also had a positive effect on the stock market.
However, as concerns regarding a ‘bank run (mass withdrawal of deposits)’ spread, centering on small and medium-sized banks in the United States, the financial market’s insecurity seems to be growing once more. On the New York Stock Exchange, on the 13th (local time), small and medium-sized bank stocks continued to plunge. First Republic Bank, where the possibility of a bank run is being raised, fell 61.8% on the day, while Western Alliance Bank (-49.3%), Pac West Bank (-45.3%), and Zion Bank Corporation (-25.7%) also fell by a large margin. fell to
The market is paying attention to the February Consumer Price Index (CPI) of the United States, which will be announced at 9:30 p.m. If the CPI in February is higher than the market expectation, the possibility of the Fed raising interest rates at the regular FOMC meeting in March increases, despite the uncertainty in the financial sector.
Kang Jae-goo, a researcher at Hanwha Investment & Securities, said, “The SVB incident may worsen investor sentiment in the short term,” and “this is because insolvent banks may appear once more in the absence of an official change in the Fed’s monetary policy stance.” He added, “Investors’ anxiety will be resolved only when uncertainties such as the Fed’s recognition of the problem and concrete response are resolved at the FOMC in March.”
Silicon Valley Bank (SVB), New York, USA on the 13th | Archyde.com Yonhap News
