KOREA'S STOCK MARKET SURGED BY 17%, WITH THE LARGEST SINGLE-DAY INCREASE IN THREE-STAR ELECTRONICS AND SK HERCULES

ON FRIDAY, 31 JULY, THE KOREA KOSPI INDEX SURGED BY 17 PER CENT, LARGELY AS A RESULT OF A NEW INVESTMENT BOOM IN GLOBAL SEMICONDUCTOR EQUITIES. THE KOREAN MARKET IS EXPERIENCING A SEVERE SHOCK DUE TO THE VOLATILITY OF THE LEVERAGE TRADE. KOREA ' S KOSPI INDEX ROSE BY 17 PER CENT TO 6545.15 POINTS, AFTER FALLING FOR THREE CONSECUTIVE DAYS, TO ITS LOWEST LEVEL SINCE 7 APRIL. THREE-STAR ELECTRONIC STOCK PRICES INCREASED BY MORE THAN 26 PER CENT AND SK HERCULES BY 29 PER CENT, ALL OF WHICH RECORDED THE HIGHEST SINGLE-DAY INCREASE. THE TWO CHIP ENTERPRISES TOGETHER ACCOUNTED FOR MORE THAN HALF OF THE KOSPI INDEX AT MARKET VALUE. ON THURSDAY, THE UNITED STATES' SEMICONDUCTOR INDEX INCREASED BY 8 PER CENT, UNITED STATES LIGHT TECHNOLOGY BY 18 PER CENT, AND MICROSOFT'S STRONG FINANCIAL REPORTING, WITH STOCK PRICES RISING BY 15 PER CENT, THE LARGEST INCREASE IN 18 YEARS, RESULTING IN AN ALARMING REBOUND OF SEMICONDUCTORS. IN THE WIDER ASIAN MARKET, THERE HAS ALSO BEEN A SIGNIFICANT INCREASE IN OTHER S & T INDICES, WHICH HAVE RISEN BY MORE THAN 5 PER CENT PER DAY THROUGH THE 225 INDEX AND BY 7 PER CENT IN THE TAIWAN WEIGHTED INDEX. KIM XIAN