“Bush Effect” Causes Stocks to Rise 14 Points

As the re-election of George W. Bush as U.S. president is becoming likely, the Korea Composite Stock Price Index (KOSPI) rose sharply on Wednesday. Furthermore, the South Korean Won to US Dollar Currency Exchange Rate rose for the first time in 11 days. (The value of the won depreciated.)

On Wednesday, the KOSPI in the Seoul Stock-Exchange market closed at 861.05, 14.38 points (1.69 percent) higher than the previous day, recovering to the 860 line for the first time in 17 days (based on transaction date).

In the market, the KOSPI started at 848.83, 2.16 points higher than the previous day, fluctuating throughout the ballot counting of the U.S. presidential election, and then rising sharply later in the session as the re-election of Bush candidate became more apparent.

The Kosdaq index closed at 362.59, 1.84 points (0.51 percent) higher than the previous day.

In the foreign exchange rate market, the won-dollar exchange rate closed at 1116.20 won per US dollar, 1.40 won higher than the previous day.

Furthermore, interest rate has once again increased within narrow limits. (Bond prices have declined).

Kang-Woon Lee kwoon90@donga.com