Stock Value Dropped below 680 Points

Stock value dropped weakly below 680 points. As foreign currency rate increases (devaluation of won against dollar), the rate increase to 1,220 won.

On the 23rd, Korean Composite Stock Index (KCSI) dropped by 24.69 points (3.51%0 and closed at 679.43 points. Kosdaq also dropped by 1.85 points (3.45%) and recorded lowest level of 51.83 points in this year. The droppings are estimated to having been affected by Korean Thanksgiving Day and US stock vale.

The transaction was stagnant and the transaction amount of the exchange was below of 2 trillion won, Kosdaq also recorded only 474 billion won that was the lowest level in this year.

During the Thanksgiving Days, Dow Johns Index dropped below 8,000 points because of negative operation record of US major companies, and the present of resolution of Attack Iraq by President George Bush to parliament House squeezed investor’s confidence.

Private investors net bought 2.15 billion won, but foreign and institutional investors net sold stocks worth 91 billion won and 124 billion won respectively. Among major items, only Korea Electricity recorded a little bit of increase. Samsung Electronics, Posco, Hyundaai Motors etc dropped more than 4 %.

In Kosdaq, institutional and private investors were in sale position for all items including major items. So all of items recorded decline.

Kim Se-jung, Senior Research of Dongwon Security, estimated “In US and Kerea, many of investors withdraw from stock markets, and Iraq matter looks not be solved in near future. So the stock market will be bearish for some time”

At that day, Seoul foreign currency market closed at 1,221.6 won for US dollar by increasing 11.6 won compared to the end of last week as Japan failed to issue national bonds and Yen showed weak.

Cheol-Yong Lee lcy@donga.com