- After the continued, albeit slight, loss of the previous week, the KOSDAQ50 futures market rebounded dramatically this week.
- After a three-day Lunar New Year break, the KTB futures market showed its V-shaped movement.
- Thanks to the skyrocketing local stock markets, the KOFEX USD/KRW F/X futures market showed its downward trend this week.
KOSDAQ50 Index Futures Market
After the continued, albeit slight, loss of the previous week stemming from sustained market unfriendly factors such as the weaker US stock markets amid the bankruptcy of Enron, the further dampening Japanese economy, and the increasing tension between North Korea and the US, the KOSDAQ50 futures market rebounded dramatically this week.
At the reopened KOSDAQ50 futures market after a three-day Lunar New Year break, the lead month contract KQ203 rose 4.95 points or 4.99 percent from the previous week during the two days of the week and finally it closed the week at 99.10 points.
The major reasons for the upturn this week are as follows:
- The ascent in the US stock markets
- Strong buying sprees in the local stock markets by foreign and institutional investors adding up to KRW 2,474 million and KRW 3,422 million on a net purchasing basis; the KOSPI and the KOSDAQ Comp Index increased by 43.93 points or 5.9 percent and 2.42 points or 3.32 percent closing the week at 783.59 points and 75.30 points from the previous week.
Korea Treasury Bond Futures Market
This week, the KTB futures market showed its V-shaped movement. Firstly on Thursday, the lead month contact KTB203 decreased by 28 ticks at 103.89 caused mainly by the ascent of the US and Korea stock markets. During the Lunar New Year break, the Dow Jones Industrial Average rose 3.8 percent and the NASDAQ Comp Index shot up 4.3 percent and the KOSPI at Seoul bourse also skyrocketed by 56.52 points or 7.64 percent on Thursday, the biggest rise of the year, closing at 796.18 point, a 19-month high.
However, on Friday, the KTB March contract turned upward gaining 11 ticks due to a correction in the local stock market in reaction to the incredible ascent at the previous day. Consequently, the lead month KTB March contract finished the week at 104.00, down 17 ticks from the previous weekend.
The average daily volume this week posted at 36,886 lots, down 17,354 lots or 32.0 percent from the previous week.
USD/KRW Currency Futures Market
Thanks to the skyrocketing local stock markets, the KOFEX USD/KRW futures market showed its downward trend this week.
In the market, the lead month contract USD202 decreased by KRW 5.5 during the week closing the week at KRW 1,315.5 per USD. At the same time, in the NDF market, most of the USD/KRW contracts represented their downward trends as well.
The average daily volume in the USD/KRW futures market recorded 4,440 contracts, down 2,381 contracts or 34.9 percent from the previous week.
