Stock market plunges below 700 mark

The local bourse, which has been showing signs of instability, saw the benchmark KOSPI drop below the 700 level, stunning investors. On the 28th, the KOSPI plunged by 35.03 points to 692.65, its lowest level since May 30(691.26).

Massive selling by foreign investors was seen as the main reason behind the plummeting share prices. Spooked by the NASDAQ index`s drop below 3,900, foreigners sold throughout the day, recording a net selling position of 276 billion won. This is the first time that foreign investors have net sold more than 200 billion won in stocks since April 27.

International investors mainly dumped Samsung Electronics shares, dragging the price down to the 280,000 level. The rapid fall in the blue chip stock also dragged down SK Telecom share prices, and the situation deteriorated as more time passed.

The KOSDAQ index closed at 114.45 points, a decline of 4.13. The 115 line was sustained early on, but as the KSE crashed, the KOSDAQ shares plunged with it.