Izzy,
I'd put it, great company, lousy market. Lash down everything that's loose and prepare for the storm. Just my two cents.
Peter
fyi, I've been following the Asian crisis closely. This is *not* a regional event. It's a global event. It's big.
Look at this article from yesterday's Korea Times. Key quote:
<<sales of automobiles and refrigerators nosedived 89.3
percent and 49.2 percent in June, compared with figures of a year
before.>>
phew!
koreatimes.co.kr
Economy to Shrink 5-6 Pct This Yr
08/10(¨—) 19:11
The nation's economy is expected to contract by 5 to 6 percent this
year, an amendment to the growth target of minus 4 percent, which was
agreed to between the IMF and the government.
''The economic outlook is getting worse than was anticipated because of
a sharper decline in domestic demand and facility investment,'' said Lee
Seong-tae, director of the research department at the Bank of Korea
(BOK).
The central bank official warned that the nation will not live up to the
annual growth target of minus 4 percent due to a further aggravated
economic situation.
However, he refused to specify figures. He dismissed more pessimistic
foreign media reports that the Korean economy will contract by up to 7
to 10 percent this year.
Lee's comments can be interpreted to mean the economy will shrink by 5
to 6 percent.
He said the economic growth in terms of gross national product (GDP) was
estimated to be further aggravated in the second quarter of the year in
comparison to the first, when the economy contracted by 3.8 percent.
He noted that the gloomier prediction was based on continuing decline in
both industrial output and consumption following the financial turmoil
and economic crisis, which forced the nation to turn to the
International Monetary Fund (IMF) for a $58-billion bailout package.
Facility investment is predicted to continue its downward trend after
plunging 40.7 percent in the first three months of the year, according
to the BOK.
Imports of machinery for industrial production plummeted by 56.5 percent
in the first quarter and 62.8 percent in the second quarter, signalling
that industrial output might again decline sharply in the latter half of
this year.
Industrial output dropped 8.1 percent in the first quarter and 12
percent in the second.
In June alone, the output slid 13.7 percent, compared with a drop of
11.2 percent in April and May.
Consumption also fell by 10.3 percent in the first three months over the
same period as last year. Consumption is likely to decrease further as
production of consumer goods continues to dwindle.
In particular, sales of automobiles and refrigerators nosedived 89.3
percent and 49.2 percent in June, compared with figures of a year
before.
Sales of cosmetics, garments and footwear also tumbled 66 percent, 80
percent and 53.4 percent, respectively.
However, the central bank expected that the nation will meet the target
current account surplus set at $33-35 billion in 1998 by Seoul and the
IMF.
The surplus stood at $22.3 billion in the first half, helped by a
massive trade surplus. But that growth is forecast to slow down due to a
decline in exports in the second half.
The BOK predicted that the consumer price index will rise 7 to 8
percent, down from the agreed target of 9 percent.
A rise in tax and utility prices will put upward pressure on consumer
prices, but the BOK believes that the price index will remain within the
9-percent target as consumption continues to fall sharply. |
