Go to contents

Stock Market ‘Black Thursday’ – the Collapse of 590 Line

Stock Market ‘Black Thursday’ – the Collapse of 590 Line

Posted October. 10, 2002 22:42,   

한국어

Tornado of ‘Black Thursday’, the concurrent decline in stock markets in US, Japan, Europe etc, shakes Korea stock market and financial market seriously.

The 600 level of Korean Composite Stock Index (KCSI) collapsed for last 11 months and Kosdaq has recorded the lowest level for consecutive two days. Won – Dollar rate increased to 1,250 won (devaluation of won) first in the last 5 months, return of company bond declined to 5% annually etc.

So the government will have economic adjustment meeting at 11th and establish stock stabilization policy.

On the 10th, KCSI collapsed 600 level that was investor’s psychological Maginot line and closed at 584.04 points dropped by 35.90 points (5.79%). It is the lowest level since 9th of November of 2001 (576.75%) and dropped by 37.3% compared to the maximum of 18th of April (937.61).

Kosdaq dropped again and recorded the lowest level to 43.74 points dropped by 2.09 points (4.56%).

Samsung Electronics closed at 273,5000 won dropped by8.07% because of foreigner’s selling and recorded the lowest level since 27th of December of 2001 (270,000 won). Kukmin Bank also dropped by 5.47% and recorded the lowest level since the acquisition in November of 2001. The typical domestic demand stock, Lotte trios, Lotte-Chilsung, Lotte- Samkang and Lotte Confectionary, dropped to the limit line.

At that day, Nikkei Index collapsed 8,300 Yen once and closed at 8,439.62 points dropped by 99.72 points (1.17%). It was the lowest level since March of 1983. Hansen Index of Hong Kong (1.72%) and Taiwan Index ((0.42%) also dropped.

Dow Johns Index of New York closed at 7,286.27 points dropped by 215.2 points (2.87%) and Nasdaq closed at 1,114.09 point dropped by 15.12 points (1.34%).

In domestic foreign currency market, Won-Dollar rate closed at 1257.80 won increased by 11.20 won and recorded the highest level since 17th of May (1261.60 won).

On bond market, company bond with maturity of 3 years closed 5.94% annual dropped by 0.08% and government bond closed at 5.33% dropped by 0.06%.

The government will open economy adjustment meeting chaired by Chun Yun-chul, Vice-Premier & Minister of Finance and Economy and discuss about early introduction of stock stability systems such as ▽the introduction of compulsory bond converting into share after a certain period ▽the introduction of company annuity in the early of the next year ▽the extension of pension invested on stocks.