Hostile Environment
The Korean stock market remained bearish on June 15, the first day to which the new price limit was applied.
The Korea Composite Stock Price Index (KOSPI) fell to 2,042.32 points, losing 9.85 points from the previous session, to continue to decline for two sessions in a row, amid concerns over the spread of the Middle East respiratory syndrome coronavirus (MERS-CoV) and a Greek default. Investors were also wary of the new price limit, and the trading volume decreased by more than 78.11 million shares to approximately 310.13 million.
Foreign investors recorded net purchases of 122.5 billion won (US$109.5 million), whereas institutional investors recorded a net selling of 138.2 billion won (US$123.5 million). Individual investors sold their shares in the early stages, before veering to a net purchase of 14.3 billion won (US$12.8 million) in the afternoon session.
Samsung Electronics failed to continue its upward movement, while Cheil Industries lost more than 7 percent due to the possibility that its merger with Samsung C&T could founder.
The Korea Securities Dealers Automated Quotations (KOSDAQ) lost 6.55 points from the previous session, to close at 705.85. The won-dollar exchange rate, in the meantime, rose by 2.6 won from the previous day to close at 1,117.3 won per U.S. dollar.