Kospi 856

The composite stock exchange index reached 856 point returning to buying mood in spite of various weak points. On the 14th, which is Triple Witching Day (a simultaneous expiration of stock options, index options and futures contracts), Korean stock market closed at 856.86 increased by 7.73 point from yesterday, as individual investors bought stocks amount of 400 billion won and stock price soared in the late second session. Kosdaq index also jumped over 87 point level closing at 87.49 increased by 0.53 points.

Korean stock market couldn`t avoid bearish sentiment till 2 o`clock in the afternoon due to bad news like the expiration of futures contracts, bearish American stock market and exposure of some companies` window-dressing.

But at two o`clock, one hour before closing, stared dramatic reversal. The composite stock exchange index at 2 o`clock was 829 decreased by 20 points from yesterday, but the index soared by 28 points for one hour and closed with rising sentiment. Individual investors bought the most stocks after 2 and a half-year from March 9th 2000(561.7 billion won) buying for 454.8 billion won at stock exchange market. Moreover individual investors bought stocks for 22.2 billion won at Kosdaq market. On the contrary, foreign and institutional investors sold out for 379 billion won at main bourse and 61.1 billion won at Kosdaq market.

Experts analyzed that the soaring stock price was due to the reliance on uprising sentiment surpassing the concerns about expiry of futures and option.

Kim Joo-Hyung division chief of Tongyang Investment Bank said, “stock market overcame a big obstacle of Triple Witching Day. But it is uncertain whether stock price will continually increase as foreign investors are still selling. ”

Wan-Bae Lee roryrery@donga.com