KOSPI Recovered the Line of 800P Increased by 19P, As Foreign Investors Purchased the KOSPI 200 Future Intensively.

Despite a downturn of the New York stock market, the stock prices sharply increased, and KOSPI recovered the line of 800P after the lapse of 20 days. As foreign investors purchased the KOSPI200 Future or made the 6547 Agreement for the future, the future price increased because the program arbitrage was around KRW 306.2 billion.

As of July 9, KOSPI was 801.99 increased by 18.64P(1.38%) over the previous day. It is the first time that KOSPI reached to the line of 800P since July 18 (809.40). Also, there was the volume of 1,480,460,000 shares.

Due to the aftereffects of Merck & Company’s accounting irregularity, foreign investors purchased securities for KRW 33.8 billion. However, as institutions purchased fro KRW 231 billion focused on the purchase of the program, the stock price increased. Korean Won decreased to KRW 1180 against the US dollar. Such as KEPCO (5.52%), Hanjin Shipping(11.07%), Korea Shipping(8.14%) and Korea Airline (6.74%), the stock price of many companies which have a lot of foreign debts, considerably increased.

KOSDAQ was 66.91P increased by 1.62P (2.48%). It has increased for 8 days. KOSDAQ exceeded the Moving Average (65.48) increased by 10.28P (18.2%) on June 20.

Besides, customer＇s deposit as of July 8 was KRW 9,772,7 billion increased by KRW 294.7 billion over the previous day.

Chan-Sun Hong hcs@donga.com