South Korean stocks are all set to rebound after the shutdown of the computer network which was triggered by a cyber-attack. This sent the Kospi Index, the benchmark gauge of South Korea to the lowest figure in the last 2 months. The Kospi Index, on today, declined by 1% and it is currently at 1959.41.
Incidentally, almost half of the slump resulted in the last 20 minutes of the trading. The South Korean Government has already set up a probe at cyber-crisis headquarters and is currently probing links of this cyber-attack with its neighbor country North Korea. The cyber-attack played an instrumental role in shutting down many of the large broadcasters and banks in this Asian country. So far, South Korean bourse has not been able to identify any sort of problems in its own network, as far as the comments made by Won Yong Joon, the spokesperson of the bourse is concerned.
Kim Jae Dong, who heads the equity investments department of SEI Asset Korea Co., stated that he will not be surprised if it turns out that North Korea is behind this massacre. Kim added that based on historical facts, the South Korean markets have been resilient to the provocations made by North Korea and even this time, things will get back normalcy pretty soon.
The iShares MSCI South Korea Capped Index exchange-traded fund experienced a decline of 0.2% and this is at its 4-month low figure, now at $58.05. On the other hand, the American index of depositary receipts of the South Korean companies declined for the 4th straight day, today’s slump being of 0.9%.
Samsung Electronics Co., the biggest South Korean company in terms of market value, is expected to gain around 0.5% from today’s close. On the other hand, the largest banking group of the country, by market value, Shinhan Financial Group Co., may gain around 0.4%, as far as the bids and offers made after today’s official close of trading. The biggest 10 stocks in the Kospi Index by weight are expected to recoup their losses. Incidentally, Kospi 200 Index futures increased by 0.4% on today in electronic trading.
In 2013, till date, the Kospi Index has declined by 1.9%, whereas the retreat for the MSCI Emerging Markets Index has been of 2.8% for this year. Today’s trading volume was 12% less than the last 30 days’ average.