Posted May. 16, 2002 09:20,
The composite stock price soared for the past 3 days and recovered the 860 mark in 12 days, boosted by strong `buys` of foreigners and institutional investors.
The composite stock price index closed at 862.62 on the 15th, which is 25.25 points (3.02%) higher than the previous day. It has risen by 44.69 points (5.5%) in 3 days. Kosdaq general index also made an upturn of 1.68 points (2.19%), closing the transaction at 78.34.
∇Sudden Rise By Foreign Net-Purchase Of Samsung Electronics = Foreigners made a net purchase of Samsung Electronics’ 490,000 shares, worth 185.2 billion won, UBS Walburg Securities bought 390,000 shares, which is 71.8 Per Cent of the day’s total foreign net purchase (257.9 billion won). Consequently, Samsung Electronics’ stock price gained 5.03 Per Cent of increase to be 376,000 won, which is 12.6 Per Cent rise in the past 3 days.
The reason for foreigners’ offensive purchase of Samsung Electronics is that in the New York stock market, Nasdaq index had gained 66.51 points (4.02%) to close at 1,719.05 on the same day, rising above the 1,700 mark. Dow index has also risen 1.87 Per Cent to end with 10,299.18.
On the day, institutional investors net-purchased 123.1 billion won worth of deals, but individuals net-purchased about 257.9 billion won in comparison.
∇Transaction Outlook Between 880 and 900 marks = “Although foreign purchase of Samsung Electronics has settled for the time being, the composite index will rise and fall between 850 and 900 marks, because the economy’s fundamentals have no virtual change,¡° said executive director Kang Shin-Woo of Good Morning Investment Trust Management.
Daewoo Securities’ investment-analysis director Hong Seong-Kuk also pointed out, “Although the market’s low mark 804.91 on May 13 has been confirmed as mid-low mark, additional rise would need the U.S. stock market, stabilization of the economy, and export boost. It is not an easy situation for continuance of stock-price rise.”
Cosmo Investment Management’s president Choi Kwon-Wook advised that “the Korean stock market is currently unstable, as it is dependent on the U.S. market, and therefore, investment strategy should be to buy when the price rises and sell when it drops, rather than to follow the price flow.”
Mirae Asset Securities’ investment-strategy manager Lee Jeong-Ho said, “Investment sentiment is not better than the time when Samsung Electronics’ stock price rose to 430,000 won. It would be advisable to sell on short-term when the price reaches near 400,000 won.”