KOSPI Falls 55.23 Points to 1,839.82

Stock prices plummeted on Monday when the KOSPI index posted a three-day decline, closing at 1,839.82, down by 55.23 points (2.91 percent) compared to Friday, the previous trading day. It was the first time that the KOSPI has gone below 1,840 since November 28.

Growing concern over stagnation in the U.S. and an economic slowdown were major factors in the fall.

Financial experts said that increased uncertainties in the upcoming presidential election due to the expanded controversies over the BBK scandal and rapid increases in interest rates, which in turn lead to a decline in capital flows into the stock market, have also influenced stock prices. So-called “Lee Myung-bak related stocks,” which had posted sharp increases, plunged yesterday.

Lee Seon-yeop, a researcher at Good Morning Shinhan Securities, said, “It is highly likely that we will see a correction in stock prices in the foreseeable future, so we cannot expect a Christmas rally (a rise in stock prices on positive expectations of improved consumption and corporate performance) this year.”

Major stock indexes in Asia also fell yesterday.

Japan’s Nikkei closed at 15,249.79 yen, down 264.72 (1.71 percent), and the Shanghai composite index closed at 4,876.76, down 131.15 (2.62 percent).

sublime@donga.com