Stock Market Crashes: Kosdaq Hits All-Time Low of 56.06

Article excerpt

Korean stock markets ``caught a cold'' yesterday with tech issues pacing the across-the-board declines, as the U.S stock market's ``sneeze'' sent a shiver across global stock markets.

The over-the-counter Kosdaq was on a downward track for the past five straight days and closed yesterday at 56.06, shedding 2.92 points or 4.95 percent, its worst ever since it began trading in 1996.

Market capitalization also tumbled to 30.79 trillion won, one-third of the figure of 98.7 trillion won at the end of last year.

``Investors dumped their tech shares to cut losses. They are worrying that the listed companies' earning reports will fall short of their expectations,'' said Kang Kwon-woo, chief of Kosdaq market analysis at Samsung Securities.

Market sentiment will dampen further down the road, he added.

The Korea Composite Stock Price Index (Kospi) also tumbled by 2.31 points to close at 511.90.

Turnover amounted to 290 million shares worth 1.67 trillion won. Decliners outnumbered gainers by 582 to 234.

On the news that the U.S. Nasdaq market plunged to its all-time low this year, mainly triggered by mounting jitters over tech shares, the Korean tech barometer also crashed.

In addition, the won's weak trend against the dollar, coupled with the news that bank labor unions have decided to go on strike today, added downward pressure on the sliding stocks. …