Fear of Novel Coronavirus Strikes... KOSPI Starts Down 1.5%

KOSPI Falls Nearly 2% at Opening
"Likely a Short-Term Phenomenon... Fundamental Impact Expected to Be Low"

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] As fear of the novel coronavirus infection spreads, both the KOSPI and KOSDAQ opened sharply lower.

On the 3rd, the KOSPI opened at 2086.61, down 32.40 points (1.53%) from the previous session. As of 9:25 AM, it is trading at 2090.73.

In the securities market, individuals and foreigners sold a net 80.1 billion KRW and 16.9 billion KRW respectively. Institutions bought a net 99.4 billion KRW.

All sectors except paper and wood, which rose 1.97%, are declining. Many sectors such as transportation equipment (2.55%), steel and metals (2.30%), non-metallic minerals (2.20%), and securities (2.03%) have fallen around 2%.

The top 10 stocks by market capitalization also all declined. Hyundai Motor (3.20%) and LG Chem (3.11%) fell more than 3%. Others included Samsung C&T (2.30%), Samsung Biologics (2.17%), and Celltrion (2.12%).

Meanwhile, the KOSDAQ also started the session at 631.82, down 10.66 points (1.66%) from the previous close. As of 9:25 AM, it is at 630.45, down 12.03 points (1.87%) from the previous trading day.

In the KOSDAQ market, individuals sold a net 74.0 billion KRW. Foreigners and institutions bought net 47.3 billion KRW and 26.9 billion KRW respectively.

Most sectors are also in decline. Telecommunications equipment (3.46%), transportation equipment and parts (3.20%), IT parts (3%), general electric and electronics (2.80%), and information devices (2.56%) fell. However, paper and wood (2.56%), textiles and apparel (0.66%), internet (0.25%), and food and tobacco (0.12%) rose.

Most of the top 10 stocks by market capitalization also declined. KMH had the largest drop at 5.15%. This was followed by Celltrion Healthcare (2.80%) and HL Biopharma (2.59%). On the other hand, Medytox (1.94%), Pearl Abyss (0.61%), and Helixmith (0.52%) rose.

Lee Kyung-min, a researcher at Daishin Securities, said, "Fear of the novel coronavirus is likely to persist for the time being, and in the short term, whether deaths occur outside China is a key factor." He added, "If the coronavirus issue has a limited impact on global fundamentals, the KOSPI could secure support in the 2000 to 2100 range."

This content was produced with the assistance of AI translation services.