Stock Market Jumps 56 Points, Reaches 800 Points

Comprehensive wholesale stock prices jumped 56 points and reached a level of 800 points.

Comprehensive stock prices ended up at 796.18, which is a jump of 56.52 points (7.64 percent) on the 14th.

The stock market on the 14th was influenced by the news of compromise between Hynix Semiconductor and Micron, a rise in the U.S. stock market, and International Monetary Fund`s (IMF) coordinated effort to raise the economic growth rate of Korea.

The prices on this day was the highest after 19 months since July 19, 2000 (797.3) and is the second biggest in daily growth since March 2, 2000 (66.28 points).

The curent as well as future markets also jumped, and efficiency suspension of bargain nominal price (side-car) worked for five minutes from 10:43 A.M for the first time this year.

Financial agencies bought stocks worth 230 billion won by program just before closing, thereby dragging stock prices up by 13 points.

Financial agencies and foreigners bought stocks worth 200.8 billion won and 275.8 billion won respectively. Private investors sold stocks worth 453.7 billion won.

The amount of shares transacted was 751 million and 690,000, and the transacted price was 4 trillion 9705 million won.

Steel and medical industry showed a bullish performance and rose more than 10 percent amid rising stock prices of every industry.

627 items recorded a rise in stock prices including 44 which recorded the highest limit, and it was 3 times higher compared to items whose stock prices fell (88 items including 10 which recorded the lowest limit).

The price of KOSDAQ also recovered and reached the level of 75, which was 75.19 and is an increase of 2.31 points after 6 days.

Hynix dropped 6 percent because of increased selling as there was fear regarding its future after its elimination of the DRAM department.

On the other hand, Samsung Electronics rose to 350,000 won level, which is an increase of 10 percent after 19 months, because of expectation that Samsung Electronics might get the relative advantage.

The stock price of the Foreign Exchange Bank, which is main bond bank for Hynix, showed an increase of 5,760 won, which is 4.3 percent.

POSCO ended up at 146,000 won, which is the highest price after 20 months since January 17, 2000 because of buying tendency of foreigners, as there was expectation that U.S import control regarding steel might be weaker than expected.

Sang-Chul Kim sckim007@donga.com