The benchmark Korea Composite Stock Price Index (KOSPI) closed at the 2,350 level as China A-stocks are included in the Morgan Stanley Capital International (MSCI) emerging markets (EM) index. It dropped to the 2,340 level in early trading but succeeded in reducing the drop due to growing purchases of individual investors.
The KOSPI closed at 2,357.53 on June 21, down 11.70 points, or 0.49 percent, from the previous day. This is largely due to the fact that major U.S. stock-market benchmarks also closed lower due to the drop in oil prices, which made investors take a wait-and-see attitude, and mainland China A-shares are included in the MSCI EM index.
In the stock market, foreign investors sold 181.7 billion won (US$159.11 million) worth of stocks for the first time in three days, and institutional investors also sold 188.6 billion won (US$165.15 million). On the other hand, individual investors bought 295.2 billion won (US$258.49 million) worth of stocks.
Shares, which hold a high rank in terms of market capitalization, also showed mixed fluctuations. Hyundai Motor saw its decrease by 3.6 percent, Shinhan Financial Group by 2.32 percent and KB Financial Group by 2.17 percent, while SK Telecom and LG Chem saw its increase by 2 percent and 1.63 percent, respectively.
The KOSDAQ also fell. It closed at 665.77, down 3.64 points, or 0.54 percent, from the previous day. Institutional and individual investors sold 8.5 billion won (US$7.44 million) and 20.8 billion won (US$18.21 million) worth of stocks, while foreign investors bought 31.7 billion won (US$27.76 million) worth of shares.
Meanwhile, the won-dollar exchange rate has increased for two days in a row, recording 1,144 won in the foreign exchange trading market in Seoul, up 8.60 won.