By Yoon Ja-young
Staff Reporter
The KOSPI marked its biggest plunge Friday since last November as both foreign and institutional investors dumped stocks.
The main index closed at 1,602.43 Friday, down 40 points, or 2.44 percent, from Thursday, marking its lowest level this year. The fall was the biggest daily plunge since Nov. 27 when the market nosedived 4.69 percent following the request for a debt moratorium by Dubai World.
Meanwhile, the tech-heavy junior Kosdaq fell 20.83 points, or 4.03 percent, to 496.57. The won closed at 1,161.8 won per dollar, losing 10.3 won from Thursday.
Analysts said that the stock market seems to have lost its upward momentum for now. "A decrease in hedge fund investment and China's tightening policy could work together to bring an end to the dollar carry trade. Emerging markets could suffer a blow," said Cho Sung-joon, an economist at Meritz Securities.
The market started the day on a negative note upon the overnight performance on Wall Street. At one point the KOSPI fell below 1,600 points as foreign investors sold off stocks.