KOSPI Falls Below 1,000

The Seoul stock market plunged with the Korea Composite Stock Price Index (KOSPI) falling below the 1,000-won level once again.

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The KOSPI closed at 993.13 on Tuesday, down 26.56 points, or 2.6 percent, from the previous day due to the selling of foreign and institutional investors.

Also, the technology-heavy Kosdaq Stock Market closed at 482.02, an 11.97-point (2.42 percent) drop from the day before.

According to analysts, declining prices have been affected by the high oil price, the unstable exchange rate, North Korea’s nuclear issues, and possibility of China’ revaluating its currency, but the pressure brought by the nine-week gains must have dampened the investment sentiment of foreign and institutional investors.

That day, institutional investors sold a net 234.7 billion won worth of stocks (net selling: the stock sale price minus the price it was bought at), leading the market to the plunge. Foreigners sold a net 18.6 billion won, while individual investors net purchased 253.3 billion won.

Wan-Bae Lee roryrery@donga.com