![On the morning of the 26th, when the KOSDAQ index exceeded 1,000 points during the intraday, it is showing 1004.09 points, up 4.79 points (0.48%) from the previous day on the display board of Hana Bank's dealing room in Myeong-dong, Jung-gu, Seoul. [뉴스1]](https://i0.wp.com/pds.joins.com/news/component/htmlphoto_mmdata/202101/27/4eebdd66-95eb-4920-b552-39c086bacb79.jpg?w=560&ssl=1)
On the morning of the 26th, when the KOSDAQ index exceeded 1,000 points during the intraday, it is showing 1004.09 points, up 4.79 points (0.48%) from the previous day on the display board of Hana Bank’s dealing room in Myeong-dong, Jung-gu, Seoul. [뉴스1]
The KOSDAQ index exceeded the 1000 line at one time during the week. It has been about 20 years and 4 months since September 2000, when the attention bubble related to information technology (IT) occurred. On the 26th, the KOSDAQ index once increased to 1007.52. However, the KOSDAQ index ended at 994, down 0.53% (5.3 points) from the previous day due to the’sold out’ offensive by foreigners and institutional investors. Among the top stocks in the KOSDAQ market cap, Celltrion Pharmaceutical rose 2%, but Alteogen (-2.21%), CJ ENM (-2.78%), and Kakao Games (-1.71%) declined.
KOSPI retreats by 3100 line in one day
Son Byung-du “Improved the irrationality of short selling”
The KOSDAQ index, which soared to 2834 in March 2000, plunged below the 500 line in six months as the IT bubble collapsed. In March last year, it was pushed to 428 due to the shock of a novel coronavirus infection (Corona 19). It exceeded the 900 line in December of last year and the 990 line on the 25th. As of the 25th, the market cap exceeded 400 trillion won.
On the 26th, the KOSPI was pushed back to the 3100 line a day after breaking through the 3200 line. On this day, the KOSPI ended at 3140.31, down 2.14% (68.68 points) from the previous day. Individual investors net bought about 4.2 trillion won, but institutions (-2250 billion won) and foreigners (-199 trillion won) recorded massive net sales.
Regarding the controversy over the resumption of stock short selling, Byeong-du Son, chairman of the Korea Exchange, said, “We will strengthen preliminary inspection and follow-up management, and collect market opinions to improve irrational systems and practices. At an online press conference that day, he explained that ▶Expanded disclosure of information related to short selling ▶Reinforced monitoring of illegal short selling ▶Shortened the period of suspicious transactions (6 months → 1 month)
Chairman Son was cautious about expanding short selling opportunities to individual investors. He said, “If we indiscriminately expand short-selling opportunities to individual investors with low credit, intelligence and risk-taking capabilities, there is a risk of loss.”
He answered negatively to the question of whether there are plans to develop derivative financial products based on cryptocurrencies such as bitcoin. Chairman Son said, “It is premature to consider it as an underlying asset for derivatives in a situation where virtual currency (cryptocurrency) such as bitcoin has not been incorporated into institutional assets.” Regarding the controversy over the KOSPI bubble, he added, “Considering that stock prices around the world have been good and the paradigms of various industries are changing, we cannot decide whether it is a bubble or not.”
Reporter Hwang Eui-young [email protected]