KOSPI Recovered over 890

The Korea Composite Stock Price Index (KOSPI) re-reached 890 in five days after three-days consecutive gaining.

The KOSPI closed with 894.28 by soaring 18.59 points (2.12 percent) on 15th. Kosdaq also gained 1.58 points (1.88 percent) to 85.82.

533 stocks of the Korea Stock Exchange (KSE) and 414 stocks of the Kosdaq rose and 252 stocks of the KSE and 257 stocks of the Kosdaq declined. Although yesterday`s trading was 942.71 million shares, which is the largest since January 10th (1billion and 57.13 million shares), the daily turnover was only 3 trillion and 494.7 billion won, which is much lesser than that of January 10th (5 trillion and 874 billion won) because of the dominance of the low-price stock trading.

People expected that the Samsung Electronics` quarterly profits, which is scheduled to be announced on 19th, will exceed as was expected, and it spread the `buying` mentality. Also the settlement of short-term problems, such as the absorbing of the sales which were introduced to the market due to the maturity of the stock index warrants, led the increase. Foreign investors, who had put large amount of sales to the market until last week, showed net buying.

Market experts analyzed that the market is ready for another rise because the KOSPI broke the 20-day average points (888.90) in three days.

The customer`s deposit on 13th was increased 104.3 billion won to 12 trillion and 136.6 billion won compare to the previous day. The account receivable was still in high level (1 trillion won and 224.3 billion won) although 11.2 billion won was reduced.

Chan-Sun Hong hcs@donga.com