KOSPI Slips Below 530 Along with World Stock Markets

With the synchronized downturn of the world stock markets including those in the U.S. and Japan, the KOSPI dropped to a 17-month low, falling below the 530 mark. The Kosdaq index also recorded an all time low for the sixth consecutive day, further pulling the Korean stock market into the mire.

The KOSPI market shed 11.71 points or 2.15 percent to close at 532.53. The KOSPI declined 57.52 points or 9.7 percent in the past six days, recording its lowest since October 23, 2001, when it ended trading at 530.50.

The Kosdaq retreated 0.77 points or 2.13 percent to close at 35.43. The Kosdaq nose-dived by 15.8 percent or 6.63 points in the past six days.

Shares of SK subsidiaries plummeted since the prosecution announced fraudulent accounting practices of SK Global worth 1.5 trillion won. Foreign investors sold shares worth 87.3 billion won on the KOSPI market, further driving stock prices down. Japan’s Nikkei shed 1179.83 yen or 2.24 percent to close at 7,862.43 yen, slipping below the 8000 yen mark in 20 years. Taiwan’s Index declined 1.38 percent.

The U.S. Nasdaq also dropped 2.06 percent, the Dow Jones Index by 4.22 percent, Germany’s Index by 4.22 percent and Britain’s FTSE 100 by 1.50 percent.

Analysts forecast that stock prices would continue to drop due to outside factors including the Iraq war, the North Korean nuclear crisis, and selling by foreign investors.

Chan-Sun Hong hcs@donga.com