[THE INVESTOR] Analysts warned Britain’s vote to leave the European Union may further dampen Korean stock financial markets as panic gripped investors.
On June 24, the country’s benchmark KOSPI shed 61.47 points, or 3.09 percent, to 1,925.24. Sidecar kicked in following the secondary KOSDAQ’s 6-percent plunge.
Shocked investors dumped pounds, leading the value of sterling to slump to a 31-year low on currency markets. Other Asian markets including Japan’s Nikkei finished the day with big losses.
Traders monitor stocks after the Kosdaq fell by more than 6 percent on June 24.Yoon Byung-chan/The Investor
Following the Black Friday panic, analysts cautious of Black Monday which could drag KOSPI down to 1800 points-level next week.
Hyundai Securities’ Ryu Yong-seok said how Korean markets will move from now on depends partly on the government’s measures, which should come out soon, to mitigate the negative impacts.
“The KOSPI could retreat to a range of 1830 and 1850 points,” he said, predicting a sizable outflow of global funds in the short term.
Kyobo Securities’ Kim Hyung-ryul said the KOSPI is expected to fall to 1800 level at the lowest, saying the negative impact from Brexit will continue until early next week.
“It is likely that KOSPI will collapse to below 1800 points but not below the level as there are not much changes in the real economy,” he said.
By Park Han-na (
hnpark@heraldcorp.com)