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[경제]Asset market ‘wobbles’ due to US tightening signal… LG Ensol plunges after listing

■ Host: Anchor Kim Jung-ah, Anchor Park Seok-won
■ Cast: Jo Tae-hyun / Reporter of the Ministry of Economy

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate content.

[앵커]

As I mentioned earlier, the US stock market is also being affected as the US Federal Reserve has made it clear that it will raise interest rates soon.

[앵커]

The asset market is also reacting sensitively as it heralds the end of the liquidity feast that has been going on for a long time. Let’s take a look at the flow of the domestic financial market with Cho Tae-hyun, a reporter from the Ministry of Economy. Welcome to.

[기자]

Hello.

[앵커]

Welcome to. Last night, the Federal Open Market Committee of the US Federal Reserve was closed, and this could be considered an interest rate hike, right?

[기자]

Our reporters also have a habit of checking the newspaper every morning when the FOMC is open and checking what news has been delivered. As you said, it can be seen that he has actually announced that he intends to raise interest rates. There are two main reasons. So far, the Fed has made it clear that it will continue to tighten austerity. Hiring is going very well this time. So now that the economy is showing signs of recovery, interest rates don’t need much help. There was one story like this.

Another is inflation. All over the world, prices are rising rapidly. In the end, he said that the central bank had no choice but to manage and hold the money in the market, but in this respect, there was no choice but to raise the base rate. On-site rates range from 0.0 to 0.25%. I prepared a graphic. Unlike Korea, the base interest rate in the US is presented in the upper and lower ranges. What is coming out now is the top, but you can think of it as a zero interest rate because 0.00% is the lowest. This is interpreted as saying that he intends to raise interest rates little by little and normalize the base rate as the COVID-19 situation is being settled to some extent.

[앵커]

As the U.S. tightens austerity in earnest, I think the faces of those who stock stocks today will be dark all day. Has it had a significant impact on the domestic stock market? [기자] of course. If the austerity policy is implemented, the market capital will decrease to some extent. This affects not only the stock market, but the economy as a whole. First of all, the funds going to the stock market will not decrease as the funds themselves decrease. There is one aspect to this.

As there is less money in the market and interest rates rise, the cost of investment by companies increases accordingly. This means that in the end it becomes a burden throughout the game. As a result, the downward pressure on the stock market, that is, the downward pressure, is inevitably strong.

In fact, the New York Stock Exchange fell sharply every day, and what stands out in particular is the continued decline in the Nasdaq index, which focuses on technology stocks. These types of growth stocks have to continuously invest, but aren’t companies investing only with their own reserves or money? Since private equity funds have to borrow and borrow hands and do it this way, if interest rates rise, these companies will inevitably take a relatively hard hit. As a result, growth stocks appear to have been hit a bit more. As reporter Nam-ki Kwon reported a while ago, the Korean stock market also declined for four consecutive trading days, but today it is showing a sharp decline.

[앵커]

So, you said that our stock market took a direct hit, but the virtual asset market like Bitcoin is also faltering right now?

[기자]

There is one characteristic that has recently appeared in the virtual asset market. It behaves similarly to the stock market. It is said that synchronization has been strengthened. In the past, it was digital gold at one time, so it was evaluated as one of the means of avoidance.

When I think of this virtual asset, the first thing that comes to mind is Bitcoin, but there was a time when it exceeded 80 million won in November of last year. But it continued to fall and then fell to 43 million won. I thought it would go up a little, but today it went down again and the trade is going on at 43 million won. So, it can be said that it is a very difficult situation. With the price dropping by half, 99% of short-term investors are now losing money, this analysis.

[앵커]

Are 99% at a loss?

[기자]

Such analyzes are also emerging.

[앵커]

There are a lot of people who invest in the stock market and invest in the virtual asset market because of the prolonged Corona 19, but it seems that there are many people who are very sad when you look at the recent trend. What is your outlook on the asset market?

[기자]

I think there are a lot of people who have a very bad mood. There is one problem with the US austerity policy based on the FOMC that I have been talking about. Another is the dispute between Russia and Ukraine. These things continue to be bad news for the stock market right now. In addition, there are even predictions that the US will raise interest rates up to five times. Then there will be more pressure.

LG Energy Solution, which we will talk about in a moment, is also a factor that puts a burden on the stock market. So, to put it simply, there is one such problem that the overall supply and demand became imbalanced because the funds were concentrated to one side. However, this is a problem that will be resolved soon. But things like austerity and the Ukraine crisis are still a bit difficult to predict. So, the stock market expects these things to have an impact until at least the first quarter. So, those who view it negatively are predicting that there is a possibility that it may fall even as high as 2600.

[앵커]

okay. LG Energy Solution, who said that the assets were rushed, started trading on the stock market from today. How is the situation now?

[기자]

The interest is also whether the so-called dazzle or not. You invested, right? If you look at it, there are many people who have received it for 1 week or 2 weeks. There were voices who predicted it would be difficult, and there were those who said it would be difficult. The biggest voice of the outlook is that since the amount of stocks in circulation is so small, it is difficult to sell in large numbers and it is easy to go up when demand is rushed. In general, there were many prospects that it would be difficult to climb that far.

First of all, the starting price is set between 8:00 and 9:00. The starting price is set at 90-200%. Since the offering price was 300,000 won, 200% at this time is 600,000 won. This is derived from the so-called dazzling. But here I failed. It was 597,000 won. So, I failed with a difference of 3,000 won.

After the market starts, going up to the upper limit is called dasangsang, but the upper limit is not. As soon as the market started, it started to plummet. Apparently, in terms of market capitalization, the possibility of the stock price rising is not very high.

[앵커]

Today’s bad stock market must have had an effect as well.

[기자]

right. These factors have had an overall effect, and at one time, they showed a decline of more than 20%. Looking at it a while ago, it is showing a continuous decline of about 13%. Because it went up higher than the public offering price, you probably didn’t lose money, but those who were expecting the same thing will have to feel a little unhappy.

[앵커]

What should I do?

[앵커]

Since there is an atmosphere that is going up a little right now, I think that part needs to be looked at in detail again.

[기자]

Yes. You may have heard of a company called Hyundai Engineering. It is a construction engineering company affiliated with Hyundai Motor Group. The company made institutional demand forecasts until yesterday. So, I plan to go public soon, but the problem is that it failed at the box office. It is known that the competition rate is only in the hundreds of units. So, there was even a prospect of withdrawing the listing, but they said that they would not do that for the first time.

Instead, the public offering price will probably be the lowest part of the expected range. Another place of interest is Hyundai Oilbank. This is the third time we are trying to be listed. Last month, I submitted documents for preliminary examination for listing. Companies such as Kyobo Life Insurance are currently pursuing an IPO. SSG.com, Market Kurly, and CJ Olive Young, which you have heard a lot in the distribution industry, are also potential candidates for this year’s listing.

[앵커]

Lastly, I would like to ask you a question about real estate. Apartment prices in Seoul have fallen for the first time in 20 months.

[기자]

Yes. The Korea Real Estate Agency releases weekly apartment price trends every week. However, this week’s data showed that the embargo was released a little while ago, and it turns out that apartment prices in Seoul have fallen by 0.01% from a week ago. So, when I looked through the data earlier, it was the first time since the end of May 2020 that it had fallen. So, in 20 months, apartment prices in Seoul have fallen.

Jeonset prices in Seoul also changed to flat. Apartment prices across the metropolitan area also showed a shift to flat rates. To explain the background, the Bank of Korea had to raise the base rate one after another, and consumers had no choice but to feel the burden of raising money. It seems to have had an even greater impact with the onset of strong household loan regulations. So on the demand side, there were strong restraints, and these things worked to some extent, you could say.

This is a trend reversal. It seems a bit difficult to talk about. As I said, there has been some suppression on the demand side, but the supply problem that has been a problem in our real estate market has not been resolved at all yet. That is why now, before the presidential election, consumers are waiting and waiting, and there is this aspect.

In addition, it can be seen that the transaction cliff phenomenon has had an effect as it suppressed demand. First, I think we need to look at the situation a little more. The right to request a renewal contract expires in July. After this time, if the jeonse market is shaken up again, the real estate market is likely to become unstable again, so it seems too early to be vigilant.

[앵커]

Okay. Until now, he was a reporter at the Ministry of Economy, Jo Tae-hyun. Thank you.

[기자]

thank you.

YTN Cho Tae-hyun ([email protected])

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