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Stock Prices Plunged 30 Points

Posted June. 11, 2004 21:30,   


Weak investor sentiment pulled stock prices down by 30 points to 750 points. The Korean Stock Price Index (KOSPI) on Friday plunged 30.77 points, or 3.93 percent, to close at 751.53 points. During the day, the prices fell under 750 points at one point.

The KOSDAQ Index also fell 12.33 points, or 3.08 percent, to 387.76 points.

U.S. stock prices remained steady on Thursday, but the rise in the international oil prices and the fall in the Consumer Expectation Index of May drove investors to sell stocks.

Individual and foreign investors, who were uncertain about the future prospect, turned to net selling on the futures market. Institutional investors sold 400 billion won of stocks.

The news that Moody’s Investors Service decided to upgrade Korea’s national sovereign ratings was not strong enough to reinvigorate the battered investor confidence.

The negative prospects for tech stocks at domestic and foreign brokerage firms led to the fall of major tech stocks, such as Samsung Electronics, Samsung SDI, and LG Electronics. The share price of Samsung Electronics, in particular, was down 6.73 percent, or 31,500 won, to 436,500 won, the lowest this year.

The Taiwan and Japan stock markets also tumbled due to the concern over sluggish sales of tech companies in the latter part of this year.

Experts say that since there is no strong demand for a stock, even selling in a small volume can drag the stock prices down. High oil prices, reduction of the U.S. Forces in Korea, and no demand for stocks are all driving down the stock prices.

Kang-Woon Lee kwoon90@donga.com