Daishin Securities "The Intensity of Financial Market Shock Will Be Limited"

Daishin Securities analyzed on the 4th that the expansion of domestic political uncertainty is inevitable in relation to the declaration and lifting of martial law.

At around 10:27 PM the previous day, President Yoon Seok-yeol declared 'martial law' through an emergency statement. The Martial Law Command issued a proclamation across the entire Republic of Korea starting at 11 PM. Subsequently, at midnight, the National Assembly held a plenary session and passed a resolution to lift the martial law.

The won-dollar exchange rate was fluctuating at 1,418.7 won, up 14 won in the New York Non-Deliverable Forward (NDF) market as of 6 AM. Overnight, it surged up to 1,440 won. The overseas KOSPI ETF (EWY) plunged 7.1% intraday before closing down 1.59%. Night futures dropped as much as 5.48% intraday before finishing at a 1.80% decline.

Lee Kyung-min, a researcher at Daishin Securities, said, "The financial market is cautious about short-term volatility expansion," adding, "Considering that the declaration of martial law was lifted immediately afterward, reducing the drop in the exchange rate and night futures market, the intensity of the financial market shock is expected to be limited." He further added, "The domestic stock and exchange rate markets are in an extremely undervalued zone," and "there is a high possibility that they will gradually stabilize."