Stock Price Rebounds to 620 in Three Months

The Korean Composite Stock Price Index (KOPSI) has continued to rise for the five consecutive day to the level of 620 in three months. Foreign and institutional investors have been the driving force along with the surging stock markets in the U.S., Europe and Asia.

The KOSPI on April 16 closed at 621.34, up 16.35 points or 2.70 % from the previous day, the highest level since Jan. 23 (625.18). The stock prices have risen 85.64 points or 16.0% for 11 days out of the latest 12 days.

In addition, the KOSDAQ gained 1.26 points or 2.93% to close at 44.22, a 70-day high since Feb. 4 (44.32 points). The trade volume at the stock exchange stood at 3.769 trillion won, the largest since Jan. 10 (3.98 trillion won). Also, that of the KOSDAQ reached 1.44 trillion won, a 11-minth high since May 23 last year (1.57 trillion won).

Foreign investors have led the hike of stock prices, by purchasing a total of 283.2 billion won in stocks, covering 142.7 billion won at the stock exchange, 25.8 billion won at the KOSDAQ, and 2,915 contracts of KOSPI 200 Futures. Institutional investors also bought stocks of 38.8 billion won.

Chan-Sun Hong hcs@donga.com