Stock Index Plunged 43 Points

The composite stock index collapsed to 870`s, the largest one-day drop since the beginning of this year. The stock falling breadth, rate, and the number of downed stocks have broken all the records of the year.

KOSDAQ index also fell to 75 base, dropping 13.6 percent for five days. The exchange rate of Won against US dollars dropped below 1300 Won, the first time in four months. (The value of Won strengthened)

On April 25, the composite stock index closed at 872.58, a drop of 43.11 points (4.71 percent). All the industrial sectors suffered as 707 enlisted stocks downed and mere 91 upped.

The KOSDAQ composite index also fell to close at 75.73, dropping 3.75 points (4.72 percent). The market condition was extremely negative with 663 enlisted stocks going down and 80 stocks going up.

Foreigners were a net seller of 15.96 billion Won in the exchange, further deteriorating the situation. As foreigners sold the heavyweight enlisted stocks affecting the index, the price of KOSPI future on June delivery fell 5.00 points (4.31 percent), finishing at 110.00. The vicious cycle continued through the day as foreigners` selling spree caused the drop of the composite stock, which caused in turn the future index fall. Stock experts forecast that the stock market will continue to be weak for a foreseeable future. The reason for their forecast is based on the fact that the composite stock index dropped below the 20 days moving average (900.62), which has been expected to be a supporting base while KOSDAQ index dropped below the 120 days moving average (76.93).

Chan-Sun Hong hcs@donga.com