KOSPI, Sharp Drop by 33 Points

Due to US market slump and weaker US dollar, the Korean stock price has sharply decreased and Korean Won has revaluated.

As the bond price has increased owing to the decrease of open market rate, the US shock has led to a fluctuation of Korean financial market.

On July 22, KOSPI was closed at 720.90points dropped by 33.7 points (4.47%) over the last weekend. KOSDAQ collapsed to below 60 points, and was off 59.28 points decreased by 3.86 points (6.11%).

At that day, the government brought out ‘middle/long term stock measures’, but it was beyond to prevent the decrease of stock price.

Won-Dollar rate was closed at 1165.6, decreased by 5.0 over the last weekend. It decreased by 13% over 1332.0 of April 12, which was the highest. It was the lowest price after the lapse of 20 months since November 2000.

The yield on three-year government bonds was off to 5.45% per annum decreased by 0.25% as the capitals have been invested to the bond due to decreasing stock price. the yield on three-year corporate bonds decreased as well. (Increase of bond price).

At that day, foreign investors continued to sell securities of KRW 50.3 billion for 5 days in the stock exchange market. Even in KOSDAQ market, the securities of KRW1.5 billion were sold and so it became the factor for the stock price decrease. However, for KOSPI 200 Future, 3,112 contracts were made and securities of KRW142.2 billion were purchased.

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