Slump of Stock Price to 580 Point

KOSPI closed at 580 point, the lowest level on the fifteen months. KOSDAQ was down to the lowest point on the fourth day. The slump of the stock price has been continued.

The KOSPI of January 29 closed at 583.35 increased by 17.21 point(2.87%) over the previous day. It is lower than the point (584.04) of October 10, 2002 and is the lowest point after November 9, 2001.

KOSDAQ closed at 42.52 point decreased by 1.23 point (2.81%). It broke the point (43.40) of January 27on the fourth day.

Foreign investors did the KOSPI 200 Future for 6130 contract (227.8 billion won) or sold it. The slump of the stock price was caused by 267.8 billion won of a program offering. Foreign investors purchase even in the morning but they sold the stocks of 28.3 billion won (Sell of 87.2 billion won for KOSDAQ).

The stock price of Samsung Electronics was 291,500 won decreased by 5.05%. It is the lowest level after October 14, 2002 (288,000 won). The stock price of SK Telecom was 173,000 won decreased by 3.89%. It showed the lowest point after one year and nine months since April 10, 2001 (171,500 won).

Experts forecasted that the there is high possibility of another stock price decrease. It is expected that the point will be supported to 550 point psychologically. However, because an oil price will be raised and the economic recovery is delayed owing to the Iraq problem, the stock price is likely to decrease to 520∼480 point.

Chan-Sun Hong hcs@donga.com