KOSPI Tumbles below 700 Point-Mark

The KOSPI sank for a second day, tumbling below the 700 mark in two months.

The stock index dropped 16.12 points or 2.25% to close at 697.40, falling below the 700 point-mark for the first time since July 23 when it reached 695.74 points. The tech-heavy KOSDAK lost 0.59 points or 1.29% to finish trading at 45.10 points.

As the shock stemming from the OPEC production cut decision remains for two days, the skidding U.S. stock indexes also negatively affected the Korean stock exchange.

Institutional investors sold shares while individual players and foreign investors purchased.

The shares of Samsung Electronics skidded to 380,000s. Other major stocks such as Hyundai Motors, KT, SK Telecom, POSCO and Kookmin Bank also climbed.

Declining shares (561) outnumbered those went up (208). Meanwhile international oil prices continued to rally.

According to the Korea National Oil Corporation, Middle East Dubai oil rose $1.28 to close at $25.58.

West Texas Intermediaries and North Sea Brent oil were worth $28.14 and $27.26, up $0.12 and $ 0.17 respectively. Gu Ja-kwan who heads the overseas market investigation team at the Korea National Oil Corporation said, ˝Dubai oil, of which price is affected by the market a day later, rose for the first time after the production cut announcement. The WTI and Brent oil soared yesterday but the rates of their price increase became somewhat modest.˝

Kang-Woon Lee Eun-Woo Lee kwoon90@donga.com libra@donga.com