[Special Stock] Kakao Down 3.57%... Growth Stock Investment Sentiment Weakens

[Asia Economy Reporter Hwang Yoon-joo] Kakao has been declining for five consecutive trading days.

As of 10:57 AM on the 27th, Kakao is trading at 83,800 KRW, down 3.57% from the previous trading day.

Kakao's stock price has only risen on three days since the beginning of this year. It has been continuously falling from 114,500 KRW on the first trading day of the new year. This is interpreted as a contraction in investment sentiment for growth stocks due to the U.S. signaling a rate hike in March. During periods of rising interest rates, the future value of companies discounted to present value decreases. Therefore, growth stocks are unpopular during interest rate hikes.

The U.S. Federal Open Market Committee (FOMC) decided at its regular meeting on the 26th (local time) to maintain the current pace of asset purchase tapering as previously planned. However, Jerome Powell, Chairman of the Federal Reserve (Fed), was regarded as the most 'hawkish' in his remarks this time, leading to analyses that the pace of rate hikes could accelerate.

This content was produced with the assistance of AI translation services.