The author is a fixed income strategist of Shinhan Investment Corp. He can be reached at jk.ahn@shinhan.com. -- Ed. Fed funds rate forecasts being revised up on the Fed’s strong resolve to fight inflationAt the Federal Open Market Committee (FOMC) meeting held in September, the US Fed has reiterated
The Fed’s interest rate policy jolted South Korean financial markets again. On Sept. 22, the won-dollar exchange rate surged from 1,394.2 won to 1,409.7 won to top 1,400 won for the first time since March 20, 2009. This is the third time in history that the rate topped that level.The exchange rate m
Selling of U.S. Treasury bonds is increasing worldwide. The amount already exceeded US$200 billion this year and major countries’ current U.S. Treasury holdings are close to the 2018 level. For example, the net selling by Japan and China, the two biggest holders, is US$69.7 billion and US$98.7 billi
The Ministry of Environment released a revised draft of K-Taxonomy on Sept. 20. In the draft, R&D and demonstration of the key nuclear power technologies including small modular reactor are classified as economic activities contributing to carbon neutrality and environmental improvement along with r
The author is an analyst of NH Investment & Securities. He can be reached at ys.jung@nhqv.com -- Ed. Although trimming down our valuation expectations on concerns towards a mid/long-term slowdown in consumption, we still see sufficient catalysts in place for Jin Air’s share price, including likely h
The U.S. taper tantrum is affecting South Korean financial markets again. The Korean won-U.S. dollar exchange rate closed at 1,390.9 won on Sept. 14, up 17.3 won from the previous day and the highest since March 30, 2009. The opening exchange rate was 1,393 won and the rate touched 1,395.5 won durin
The authors are economists at Shinhan Investment Corp. They can be reached at chee@shinhan.com. – Ed. Cases of dollar liquidity crunch in the pastThe USD/KRW exchange rate has been on a steep increase and recently topped the KRW1,380 mark, nearing or exceeding the levels seen during the dollar liqui
Dulwich College Seoul (DCSL) announced today that it held an event for students and their parents to experience traditional culture in celebration of Chuseok.With all parents invited, it was the school's largest cultural event in three years since COVID-19. It was especially meaningful for famil
The author is an analyst of KB Securities. He can be reached at jk.lim@kbfg.com. -- Ed. Lower weight in 3y KTBs, raise weight in long-term KTBs (10y or longer)KTB yields, which had been stabilizing, have rebounded, edging near their previous peaks. During the Jackson Hole Economic Symposium, Fed Cha
The Bank of Korea announced on Sept. 5 that South Korea’s foreign exchange reserves decreased US$2.18 billion to US$436.43 billion in August this year. Previously, the reserves continued to decrease in March to June and increased in July.“Last month, foreign currency asset management income increase
The author is a fixed income strategist of Shinhan Investment Corp. He can be reached at jk.ahn@shinhan.com. -- Ed. Base rates at neutral levels but central banks remain hawkish on inflationThe Bank of Korea (BOK) and the US Fed are standing firmer than ever on their hawkish stance even with base ra
The author is a global equity strategist of Shinhan Investment Corp. He can be reached at park.sj@shinhan.com. – Ed. Looking for the market bottomInvestor focus is now on finding the market bottom and setting up investment strategies for the start of a recession. Historically, stock market downturns
The authors are analysts of Shinhan Investment Corp. They can be reached at bh.lee@shinhan.com and jiwoo100@shinhan.com, respectively. -- Ed. Domestic market leader in artificial jointsCorentec designs, manufactures and markets orthopedic artificial joint systems. With its locally-produced artificia
Goldman Sachs said in a report on Aug. 23 that the chances of Korea’s inclusion in the FTSE World Government Bond Index (WGBI) are higher than before."In the best case scenario, Korea would first need to be put on the Watch List atthe next bi-annual review (in September 2022), before it could be inc
The author is a fixed income strategist of Shinhan Investment Corp. He can be reached at jk.ahn@shinhan.com. -- Ed. 2023 national budget & KTB issuance outlook seen positive for bondsThe market's focus is now shifting to the size of next year’s national budget and limit on KTB issuance with the
The author is an analyst of NH Investment & Securities. She can be reached at yd.yoon@nhqv.com. -- Ed. Although we lower TP on Daishin from W23,000 to W20,000 to reflect a general slowdown in the securities industry, we maintain a Buy rating on: 1) the likely reflection of solid real estate financin
Foreigners’ investment in Korean securities turned into a net inflow in July. During the same period, the won/dollar exchange rate rose and interest rates in major advanced countries plunged.Foreign investment in Korean stocks switched to a net inflow of US$160 million in July as investor sentiment
Korea Investment & Securities Co., a subsidiary of Korea Investment Holdings, announced on Aug. 11 that KIS Indonesia, its subsidiary in Indonesia, has successfully managed the issuance of rupiah-denominated public bonds by KB FMF, an Indonesian subsidiary of KB Card.KB FMF received a credit rating
The Korea Financial Investment Association announced on Aug. 10 that foreigners’ bond holdings in the South Korean market increased by 4.6 trillion won and hit an all-time high of 233.5341 trillion won last month.In July this year, their net bond purchase was 5.8 trillion won, consisting of 2.4 tril
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY, target price of KRW110,000; still industry top pick We maintain BUY and our TP of KRW110,000 on Kiwoom Securities:(1) Trading income eroded on exposure to the stock market, but bond valuation loss