`Fluctuating Stock Price`, 35 Points Fall

The composite stock index plunged over 30 points as foreign investors dropped their shares. The composite stock index on 10th recorded 668.77, which is 35.73 points down from last week. It has been only a day since it had recovered 700 points.

But Kosdaq, which has no double burdens on the expirations of the futures and the options contracts, closed market at 72.70, down by 0.12 points.

The worst news today in the stock market was that foreign investors sold their stocks and futures together, anticipating the impact of doubly stumbling day on 13th. Aggressive selling of foreigners dragged the price of the futures down over 5 percent, which cooled the investing sentiment, and in consequence, the institutional investors followed the selling of the foreign investors in the afternoon session.

The sold stock volume of foreign investors was 159.7 billion won, which was the largest amount since July 24th. Especially, with foreigners` massive selling of their blue chips, the price of blue chips such as Samsung Electronics and Posco plummeted almost 10 percent.

Two opinions match against on the sharp decline of the stock price today. The positivists urges that the price will turn up after 13th, because there are no other bad news except for the double burdens on the expirations dates of the future and the option transaction, while the negativists insists that the rising stock price would curve down in fear of the recent upsurge.

Lee Wan-Bae roryrery@donga.com