KOSPI Lower to 701.87 Decreased by 54 P

KOSPI was lower to 700 point instantly due to US WorldCom Shock and a sale with a loss of institutional investors. Accordingly, today is the Black Wednesday’ for the Asia stock market such as Japan, Hong Kong, Singapore and Taiwan as well as Korea Stock Market.

However, Korean Won was lower to KRW 1203.9 against US dollar with the lowest point since December 14 2000 (KRW 1202 against US dollar). An earning rate of Government Bond was ended to 5.52% a year decreased by 0.23%. A financial market is considerably shaking.

The government decided to hold the financial policy committee scheduled on June 28 under the supervision of Yun Jin-sik, a vice-minister of Finance and Economy, one day before.

As of June 26, KOSPI was lower to 701.87, decreased by 54.05 point (7.15%) over the previous day. The decrease is the lowest point since December 28, 2001 (693.70). Due to accounting irregularities of US WorldCom, the KOSPI was lower to 699.15 at the market closing as the NASDAQ 100 future dropped by 4.72%.

KOSPI 200 future was lower to 88.60, decreased by 6.45 point (6.79%) at the end of September, so the Side Car was exercised secondly. KOSDAQ was lower to 56.63, decreased by 5.25 (8.48%). It was the lowest point after the lapse of 8 months since October 10, 2001 (56.45).

There is the biggest decrease of stock price this year. The market has 788 items for KOSPI and 771 items for KOSDAQ in the decrease of stock price. Also, there are 128 items for KOSPI and 381 items for KOSDAQ in the greatest lower price.

Institutional investors put large securities of KRW 129.1 for sale with the loss in KOSPI and so decreased the stock price of blue chips. Foreign investors bought KRW 36.9 billion worth of stocks showing the purchase predominance for 3 days. Individual investors bought KRW 106.8 billion worth of stocks with the low price. However, it couldn’t stabilize the stock market.

Besides, Nikkei average stock price of Japan was lower to Yen 10,074.56 decreased to Yen 422.11 (4.02%). Hong Kong index, Taiwan index and ST index of Singapore decreased by 2.39%, 3.63%, and 2.26% respectively.

In Seoul Exchange Market, KRW-USD was lower to KRW 1203.9 decreased by KRW 9.8 per US dollar over the previous day. The secondary earning rate of 3-years maturity debentures was off to 6.45% a year decreased to 0.16%.

Chan-Sun Hong hcs@donga.com