Stock Price, Decline of 52.5P after the President Election

KOSPI was off to 650 points after 40 days and continued to fall down for consecutive 4 days. KOSDAQ dropped to the lowest points after 70 days and continued to fall down for consecutive 6 days.

It is because many analysts were submitted to a disciplinary measure on suspicion of illegal transaction in an aggravated state of the investment psychology and an ex-dividend of the December settlement corporation overlapped.

On December 7, KOSPI was off to 656.92 points decreased by 14.97 points (2.23%) over the previous day.

When it is considered that the index decreased by 8.54% theoretically owing to the ex-dividend of the December settlement corporations, it means the decline of over 6 points. For 4 days after a president election, the stock price fell down by 52.52 points (7.4%) and dropped to the lowest points since November 14 (652.15).

KOSDAQ index also was off to 46.26 points decreased by 1.04 points(2.22%). For 6 days, the index suddenly dropped by 6.44 points(12.2%) and showed the lowest points after October 14 (45.85).

The trading values of the Exchange amounted to 1,368.6 billion won. It showed the lowest points this year.

Foreign investors (36.5 billion won) and investment trust companies(70.2 billion won) and the pension fund (13.3 billion won) purchased securities but they didn’t cope with marginal supply of the program (127.8 billion won, 41.7 billion for the purchase).

There were 630 issues in the Exchange and 587 issues in KOSDAQ which showed the decline in the stock price.

Jo Ik-jae, leader of the investment strategy team, Merit Securities forecasted, “The stock price will continue the decreasing tendency owing a nuclear problem of North Korea and a possibility of USA-Iraq and a difficult demand & supply”.

Chan-Sun Hong hcs@donga.com