Korea: Buy - SAMPLE REPORT

Admin — Thu, 20 Apr 2006 02:23:57 +0800

Thursday, 20 Apr 2006

This is a sample report only. You can access the real reports by signing up now!

Summary

The Economic Clock™ for Korea continues suggesting good market prospects ahead, and there are plenty of sectors still worth considering.

The Economic Time™

Monetary Economy:

Inflation has been decelerating since its peak in August 2004. By this March, that rate had more than halved. Food inflation has kept falling since August 2004, while non-food inflation has been accelerating mildly since last August. Because of slow inflation, the Bank of Korea has allowed the monetary aggregates to keep expanding. Growth in reserve money stopped contracting last September. This March, it rose by 7%. Growth in M1 peaked last July and is decelerating sharply, while M2 and M3 are accelerating. Lending has been accelerating sharply on account of more loans for equipment: this is good news in that it indicates that Korean companies are re-tooling. Interest rates bottomed In November 2004 and have been rising, particularly at the long end of the curve. Thus, the yield curve is steepening, which bodes well for growth. On a three month monetary policy view, we expect the Bank of Korea to maintain its easy monetary policy: inflationary pressures remain low because of low domestic price pressures, strong productivity, and because the stronger won keeps imported inflation at bay.

Enzio's Clock - Korea: Buy - SAMPLE REPORT - Comments

Korea: Buy - SAMPLE REPORT

Summary

The Economic Time™

Monetary Economy: