Share prices drop 26p to 540

Following a fall in the U.S. stock market, Korean and Asian markets have also taken a plunge.

With the future of the Hyundai Construction & Engineering (HEC) crisis uncertain, share prices of Hyundai affiliates have been showing disparate positions.

On Monday, the KOSPI fell 26.64 points (4.64%) to finish at 538.94. KOSDAQ also fell 2.76 points (3.41%) to 78.07.

Share prices started at the 550 mark because of the after-effects from the presidential election, plunge of high-tech stocks and the rekindling of the HEC liquidity problem. Foreign investors net sold 4,800 December futures contracts causing the market to fall. The weak futures market instigated the large volume of sell orders and the situation continued to deteriorate.

On the other hand, the Japanese Nikkei dropped 2.16%, Hong Kong's Hang Seng Index fell 3.4%, Taiwan Weighted went down 4.85%, Singapore Straits Index dropped 2.11% due to the sharp fall of the U.S. market.

Share prices of Hyundai affiliates were volatile the whole day, as news concerning HEC¡¯s future vacillated between good and bad. While HEC¡¯s share price increased by more than 11% due to the positive outlook for the sale of the Sosan Farm, Hyundai Electronics Industries saw its share price fall as foreign investors sold off their holdings.

Foreigners net purchased 4.4 billion won, making it the 11th day of net purchasing. 28 stocks rose by the daily limit with a total of 175 stocks rising while 5 fell to the daily limit, with 645 stocks experiencing a decrease in share price.

President of KTB Asset Management, Chang In-Hwan revealed there is high possibility of a correction considering the U.S. market will be the major factor.