May 10, 2022 09:36
The U.S. Federal Reserve's interest rate hike sent the Korea Composite Stock Price Index plunging 1.27 percent to 2,610.81 points on Monday, the lowest in 17 months.
The main index dipped to as low as 2,606.08 points during intraday trading and has declined 2.5 percent since the Fed increased interest rates by a half percentage point on May 4.
The junior Kosdaq also closed down 2.64 percent at 860.84 points, falling 4.4 percent over the period. A strong dollar and weak Korean won are also affecting stock market sentiment.
The won closed down another W1.3 against the greenback at W1,274 on Monday, the weakest in two years and two months.
Analysts expect the KOSPI to remain in the doldrums for the time being. Roh Dong-gil at Shinhan Financial Group said, "In addition to the U.S. rate hike, the decline in exports due to lockdowns in China is also dampening investor sentiment."
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