Plunged Stock Price by 24 point under 750

The Korean stock market has been deterred by the plunge of the U.S. stock market and the sales rush of the foreign investors yesterday.

The composite stock exchange index fell 24.58 points down to 749.45 and closed there under 750. Kosdaq also closed at 76.20, which is 2.89 down.

The slump in the stock prices of DOW and Nasdaq badly affected the nosedive of the Korean stock market. The uncertainty of the cooperation negotiation between Hynix and Micron also led to the flight of investors.

Foreign investors sold for 221.6 billion won and made 2600 sales contracts in the future market. They recorded 42 billion won of net sales in Kosdaq as well.

In the down stream of the stock price, insurance (-5.16), chemistry (-4.72), transportation and storage (4.47), securities (4.36) led the plummeting fall of the market.

Kosdaq was not free from the influence of the U.S. market which has stumbled over the Madison bankruptcy. All items except for transportation equipments and construction fell.

Kim Joo-Hyung, director of Dongyang Securities, anticipated that "The slump may not go long but the Korean market probably will remain weak under the influence of the U.S. market."

Meanwhile, Tokyo stock exchange markets also dived down due to the influence of the U.S. market and the dismissal of the Japan`s Foreign Minister Tanaka Makiko. The Nikkei stock price went down under 10,000 yen for the first time since October 10th of last year.

The market was overwhelmed by the sales request through the day and closed at 9919.48, which is 106.55 down from the previous day. The plummet of the stock price was accelerated by the gloomy anticipation on the resolution for the insolvent bonds and the restructuring of the Koizumi Junichiro administration after the dismissal of Foreign Minister Tanaka.

roryrery@donga.com · yes202@donga.com