Stock Price Soared

The Korea Stock Price Index (KOSPI) soared again to 850 levels.

The Korea Stock Price Index (KOSPI) on the 12th closed at 846.03 rising 19.01 points (2.30 percent), and regained 840 levels after 4 days. Kosdaq Composite index also rose by 0.06 point (0.07 percent) closing at 86.60.

Stock Price Index started weak, but turned to rise with institutional investors intensively purchasing large-capital stocks.

Institutional investors bought stocks of 87.3 billion won, while foreign investors sold stocks of 124.7 billion won and individuals 17.5 billion won. Institutional investors have purchased for 3 days in a row, and foreign investors have sold for 5 days in a row.

Almost all blue chips were higher with Samsung Electronics closing at 353,000 won increasing by 4,500 won.

All businesses except for textile, clothes, electricity, gas and construction rose with chemistry, electricity, electronics, transportation equipments, distribution and insurance rising by over 3 percent.

Samsung Security forecasted, “institutional investors will lead the market after adjusting session owing to the low interest rates, increasing of floating capitals, recovery of economy and improvement of performance of enterprises. ”

Salomon Smith Barney said, “with the present tendency going on, some 27 trillion and 500 billion won will flow into the stock market within this year, and Kospi is likely to jump over 1,000 points at the end of the second quarter. ”

Suk-Ho Shin kyle@donga.com