SEOUL, KOREA - The KOSPI rose slightly on June 16 but was unable to break the 2,000 level. On Monday the KOSPI index was closed at 1,993.59, up 0.14 percent (2.74 points) from the previous trading day. Foreign investors, who had net-sold 255.1 billion won worth of shares on the 13th (Friday) on fears of a civil war in Iraq, turned toward the net-buying mode but fell short of buying 37.1 billion won only.

 

As for institutional investors, the net-buying volume for the day was 4.4 billion won, as pension funds bought up shares worth 24.8 billion won while asset management firms and securities firms were in a sell mode.

 

Kim Hyung-ryeol, Kyobo Securities analyst, said, "The main problem was not the Iraq situation but there was no clear factor that would make foreign investors buy more. Already foreign investors have buoyed the domestic stock market for quite some time now." The cumulative net-buying volume in the Korean stock markets for the year to date has been about 1.7 trillion won. The last year's cumulative net-buying amount was 3.4 trillion won.

 

The Iraq factor had an impact on different industrial sectors differently. SK Innovation, on the back of expectations that its refining margin would improve as the oil prices rise, saw its share price rise for two consecutive trading day. It was closed on the 16th at 107,000 won, up 2.88 percent from the previous day. S-Oil shares also rose 1.77 percent to 57,400 won, continuing a two-day rally.