- Following the previous week's downward movement, the KOSDAQ50 futures market continued to show the weakness throughout the week with some fluctuation.
- The yield of benchmark 3-yr K-Treasury bond decreased 5bp over the week and closed the week at 5.90 percent.
- Both in the KOFEX and the local F/X markets, the greenback inched up and down in a relatively narrow band compared to that of the previous week without any key factors, which could affect the markets.
Following the previous week's downward movement, the KOSDAQ50 futures market continued to show the weakness throughout the week with some fluctuation. In the KOSDAQ50 futures market, the lead month contact KQ203 drop by 4.9 points during the week to reach at 99.10 points on Weekend.
The reasons for the continued weakness are as follows:
- Continued net selling in local stock markets by institutions and foreigners
- Freefall of NASDAQ Comp Index losing by 92.36 points or 4.83 percent during the week at 1818.88 points on Friday
During the week, in the local fixed income market, following the previous week's downward trend the yield of benchmark 3-yr K-Treasury bonds decreased by 5bp over the week and closed the week at 5.90 percent.
At the same time in the KOFEX KTB futures market, the current month contract KTB203 gained 29 ticks during the week closing the week at 103.29, compared to the ascent of 77 ticks during the previous week.
The reasons for the less but continued strength of the KTB futures market are as follows:
- News regarding Moody's that is considering upgrade of Korea's country rating
- Auctions for issuing 3-yr K-Treasury bond on Monday and 2-yr MSB on Tuesday finishing at 5.94 percent and 5.85 percent respectively, which were higher than expected
USD/KRW Currency Futures Market
This week, both in the KOFEX and the local F/X markets, the greenback inched up and down in a relatively narrow band compared to that of the previous week without any key factors, which could affect the markets.
Firstly, at the KOFEX currency market, the lead month contract USD202 moved up and down in a band of KRW 1,317.6 to 1,321.0 per USD closing the week at KRW 1,321.0, up merely KRW 1.0 from the previous weekend.
Also, in the local currency market, the USD/KRW rate increased by 2.6 KRW per USD over the week finishing the week at KRW 1,320.2 within a similar narrow band.
The average daily volume in the USD/KRW futures market recorded 6,821 contracts, down 1,484 contracts or 17.9 percent from the previous week.
