Stock Market Essay, Research Paper

9

KOREAN ECONOMIC TRENDS

SERI

June 24, 2000

KOSPI & KOSDAQ Index Movements

630

670

710

750

790

830

870

May-16 May-22 May-26 Jun-01 Jun-08 Jun-14 Jun-20

110

130

150

170

190

KOSPI (left axis) KOSDAQ Index (right axis)

p p

Stock Market

During the week, both the Korea Stock Price Index (KOSPI)

and the KOSDAQ Index experienced a correction, closing the

week at 785.32p (2.38% fall from the previous week? close)

and 146.12p (6.34% fall from the previous week? close),

respectively.

Major factors behind the descent:

Increase in selling pressure in the market after investors sold

their share holdings to realize capital gains from the previous

week? steep rise.

Slowdown in buying activities by foreign investors.

Investors increased wariness about the latent instability fac-tors

in the financial market.

Next week, both the KOSPI and the KOSDAQ Index are ex-pected

to experience further correction, albeit at a slower pace,

as investors unsure about the future direction of the financial

market maintain a wait and see attitude.