South Korea’s main bourse Kospi posted a weak return rate of 0.03 percent since the beginning of the year, data from the Korea Exchange showed Sunday, putting the bourse near the bottom rank among its G20 counterparts.
According to the KRX, the Kospi’s rate of return stood at a lackluster 0.03 percent as of May 31, the last trading day of May, placing it at No. 19 out of 20 major bourses around the world. Its rate of return hovered just above Turkey’s benchmark XU100, which ranked lowest with a negative return rate of minus 0.75 percent.
Meanwhile, Russia’s leading RTS index posted the strongest rate, 18.43 percent, with China’s Shanghai Composite tailing behind at 16.23 percent.
The Eurozone’s Euro Stoxx 50 ranked 10th with 9.3 percent despite uncertainties stemming from Brexit, while the US’ Dow Jones Industrial Average ranked 14th with 6.38 percent.
Experts say signs of an escalating trade dispute between the US and China have been dampening investor sentiment, bringing bleak prospects for Korea’s export-reliant economy.
“Local firms have been struggling with a slowdown in the ICT sector centered around the semiconductor industry, amid major concerns that Korea will be dealt with a heavy blow from the ongoing US-China trade war,” said Lee Young-gon, an analyst at Hana Financial Investment.
Kospi closed 0.14 percent higher from the previous closing at 2,041.74 on Friday, but overall has shed nearly all the points it gained since the beginning of the year. The main bourse kicked off at 2050.55 this year and had even risen above the 2,200 level in April, buoyed by anticipation that had surrounded the US Federal Reserve’s dovish stance toward interest rate hikes.
By Jung Min-kyung / The Korea Herald (firstname.lastname@example.org)