7 in 10 stocks fall in July as stock market posts steepest decline since 2008

The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul

Prices of seven out of 10 stocks listed on Korea's main and secondary stock markets fell last month as the country's bourses posted their steepest monthly declines since the 2008 global financial crisis, market data showed Sunday.

A total of 1,859 stocks had closed lower as of Friday than at the end of June, according to data from the Korea Exchange (KRX).

They accounted for some 70 percent of a total of 2,645 companies listed on the benchmark Korea Composite Stock Price Index (KOSPI) and the tech-heavy Korea Securities Dealers Automated Quotations (KOSDAQ).

By market, 566 stocks, or 62 percent of the KOSPI's 917 listed companies, declined, while 1,293 stocks, or 75 percent of the KOSDAQ's 1,728 listings, also fell.

The KOSPI tumbled 22.2 percent in July from a month earlier, while the KOSDAQ dropped 21.4 percent.

The monthly declines were the steepest since October 2008, when global markets were battered by the global financial crisis.

Among KOSDAQ-listed companies, biotechnology firm Kolon TissueGene was the biggest loser, plunging 86 percent during the month to 13,000 won ($8.99) from 93,600 won. It was followed by The Technology, which fell 76 percent, and Kolon Life Science, which slid 67 percent.

In regard to KOSPI-traded companies, Contentree JoongAng plunged 67 percent after its parent, JoongAng Group, came under pressure from a liquidity crunch.

"The KOSPI has remained in an oversold state amid heavy selling pressure," Han Ji-young, an analyst at Kiwoom Securities, said. "Going forward, investor sentiment is likely to recover on the back of strong earnings from Samsung Electronics and SK hynix."