Stock Index Down 18 Points to 741

The Korea Composite Stock Price Index (KOSPI) plunged to the 740 point level due to concerns around the U.S interest rate increase and the oil price hike.

On June 18, the Seoul-based KOSPI closed down 18.36 points (2.42 percent) to 741.73. The day’s low was 732 points, more than 27 points lower than that of the previous day.

While the U.S stock market finished lower on June 17, the news about the higher crude oil price dampened investors’ sentiment.

The fact that the futures market investors also became wary about the market prospect and focused on selling eventually led to an even bigger drop in stock prices.

Retail investors’ net buying volume was about 180 billion won while institutional investors dumped about 120 billion won of stocks. Foreign investors net buying was about 5.9 billion won.

Most of the market heavyweights closed lower, such as Samsung Electronics, which dropped 1. 47 percent to close at 435,500 won.

Experts said, “As most of the Asian stock markets are in the red, both the futures and the stock markets fell.”

Kang-Woon Lee kwoon90@donga.com