Stock Prices Collapse below 700 Points

Korea Composite Stock Price Index (KOSPI) dropped for two days and collapsed below 700 points in four days.

Gap of falling stock prices became wider as the whole world stock market like U.S, Europe, Japan, etc dropped simultaneously and foreigners net-sold future goods as well as present goods. And oil prices raised and exchange rate of won-dollar fell (rising of won value), lowering investors` confidence.

`20 days moving average (707.02)` that was expected to play a support role collapsed and raised concerns for an additional drop.

On the 16th, KOSPI closed at 692.42, which is a drop of 15.71 points (2.22%) than last weekend. It was the lowest since 22nd of November (692.87).

KOSDAQ composite index closed at 52.25 that is a drop of 1.29points (2.41%), too.

Foreigners sold 1,519 billion won worth of shares at exchange market, 40 billion won at KOSDAQ, 2,994 contracts (1,283 billion won) of 200 future goods in KOSDAQ which dropped stock prices.

Items on which stock prices dropped are 626 at exchange market, 570 at KOSDAQ and it was much more than soared items (172 at exchange market, 212 at KOSDAQ).

Exchange rate of won-dollar at currency market closed at 1203.1 won, a fall of 6.9 won per dollar than last weekend.

In Tokyo stock market, Nikkei average stock prices finished at 8,450.94 yen, a drop of 65.13yen (0.76%) than last weekend and in Hong Kong, Hansen index was 9,654.85, a drop of 73.58 points (0.76%).

Chan-Sun Hong hcs@donga.com