Stock Prices Hit Year`s Record High of 688, an Increase of 38P

The composite stock price index hit the highest in the year as a result of a sharp increase in the U.S. stock market and an expectation of recovery of semiconductor chip prices.

The Korea Composite Stock Price Index (KCSPI) as of Dec. 5 marked 688.31, an increase by 38.41 points from that of the previous day, which was a record high since September 1 of last year (692.19). Kosdaq composite index marked 72.04 as well, an increase of 1.28 points (1.81), as a result of foreign investors` mass purchase.

Indications of recovery of semiconductor prices as well as the news of the U.S.` representative blue-chip firm Sysco`s improvement in business operations induced a sharp raise in semiconductor-related shares and blue chips of the domestic stock market.

In particular, Samsung Electronics marked the upper limit price for the first time since Oct. 21 of last year on an expectation of recovery of semiconductor prices. Sumsung`s marking of the upper limit price of the day resulted in an increase of approximately 16 points in the composite stock price index.

In addition, index-related large shares, including SK Telecom, Korea Electric Power Corporation and POSCO, showed a super-bullish tendency, marking 9.23 percent, 3.92 percent and 4.67 percent as the institutional and the foreign investors purchased large quantities of them.

KCSPI marked the year`s record highs in the daily increase of points (38.41P) and the daily sum of transactions (4,755.3 billion won).

Regent Securities Executive Director Kim Kyung-Shin forecasted, "An increasing trend of the composite stock price index will continue as an expectation of economic recovery increases, unless it drops below the line of 670."

Lee Wan-Bae roryrery@donga.com