As foreign investors pushed for selling on the Korean stock market for the seventh day, the KOSPI fell to its lowest level in 19 months, even after the KOSPI fell to 2100 at one time. Uncertainties in the global financial market have widened as the US and China trade wars, risk aversion, Italy’s credit rating decline and Britain’s withdrawal from the European Union led to a sharp fall in the won against the dollar.
The KOSPI closed at 2,106.10, down 2.57% from the previous day. It is the lowest in 19 months since March 10 last year.
The Kosdaq index fell 3.38 percent to 719.00. The KOSPI fell to 2094.69, and the 2100 ship, which had been a psychological support after the black Thursday.
The short-term factor that drove the index’s plunge was the plunge in bio-stocks. The shares of Celltrion and Samsung BioLogics plunged 8.19% and 6.60% from the previous day, respectively, as a result of the disposal of Temasek, a Singapore sovereign fund, to dispose of 2.9% stake in Celltrion as a block deal. In the KOSDAQ market, top-ranked biotech companies Celltrion Healthcare and Shinragen fell 7.23% and 7.39%, respectively.
Foreigners sold net worth of 3.5 trillion won in the securities market and the KOSDAQ market this month. The global financial market uncertainty remains high and the won weakens due to the strong dollar. Foreign investors continue to sell shares due to concerns over loss-related losses.
The dollar was closed at 1137.60 won, down 9.20 won from the previous day. Analysts said that the Chinese stock market, which rebounded the previous day, turned downward again, and investors’ buying sentiment shrank.
Asian stock markets were also down on the day. The Nikkei 225 index jumped 2.67% from the previous day.