Stock prices hit yearly low

The stock market continued to fall for the fourth consecutive day Monday to hit a yearly low.

The composite stock price index, KOSPI, dropped 10.61 points to close at 504.73, down 2.05 percent from the weekend. The index for the over-the-counter Kosdaq also fell 4.19 points (5.34 percent) to close at 74.18. Both indexes marked yearly lows.

The KOSPI was the lowest since Feb. 25 last year (499.14) and the Kosdaq index at its lowest since March 8 last year (74.02).

The Kosdaq market remained stable despite the loan scandal of Chung Hyun-Joon of Korea Digital Line. But it crashed after the scandal of Littauer Technologies erupted Monday.

The mood on the stock exchange quickly cooled down with news of the AIG president¡¯s postponement of his trip to Korea. The news caused doubts over Hyundai Group¡¯s introduction of foreign capital and dampened investor sentiment. Share prices of 11 listed Hyundai affiliates including Hyundai Electronics Industry and Hyundai Engineering & Construction fell more than 7 percent.

Trading volume was valued at 1.295 trillion won, the third lowest amount this year.

Foreigners purchased 34.2 billion worth of stocks while institutional investors sold off 48.7 billion won of shares.

Losers led gainers by 652 to 172.

The Kosdaq market remained bearish as individual investors shed their holdings in large quantities just before market closure. All 497 shares fell, and 177 were limit down.

The market sentiment fell sharply as most of the so-called A&D-related shares dropped.