Despite concerns about fresh coronavirus outbreaks and sagging exports to foreign markets, Korea stocks market is on a tear.
On Wednesday, the Korea Composite Stock Price Index, known as KOSPI, rose 2.87 percent. The highest level in three months, with shares totaling 16.8 trillion won, $13.8 billion, changing hands.
“Seoul stocks rallied amid growing expectations for economic recovery,” said Yonhap, the Korean news agency’s semi-official. The most important explanation was the government’s decision to pump another 35.5 trillion won. Approximately $30 billion, as a stimulus fund into the economy.
Signs that good times are here again have led the upswing by rocketing of Korea stocks market.
Share prices in Samsung Electronics, which accounts for approximately 15% of Korean gross domestic product, rose by 6%, while prices in Hyundai Motor, which accounts for 6 % of GDP, rose by 5.85%. And shares of the second-largest Korean chipmaker, Hynix, also rose 6.48%.
Yonhap quoted securities analyst Oh Jae-Young, expect to push growth rates by 0.5 and 0.6 percent as the stock market. Positively to the worldwide sense that despite outbreaks the era of lockdowns and shutdowns was ebbing out.
Samsung stock analyst Seo Jung-Hun said that investor more prone to U.S. economic reopening and to the availability of adequate liquidity by central banks than protest uncertainty in cities across the U.S.
However, the Bank of Korea reported that Korean companies total sales last year were down 1% from the previous year. More than 25,000 businesses’ overall operating income was 4.7% of sales, down from 6.9% the year before, while net profits were 4%, down from 6.4% in 2018.
The slowdown in American buying power had raised concerns for manufacturers of motor vehicles. In May, Hyundai Motor, Kia and its premium Genesis, sold separately from other Hyundai cars, registered sales of 104,787 cars, an 18 percent decrease from the previous year.