'Fear of C' Less Than Expected... KOSPI Falls Only 0.01%

KOSDAQ Closes Up 0.68%, Outperforming Electronics Sector

On the 3rd, KOSPI opened at 2086.61, down 32.40 points (1.53%) from the previous trading day due to concerns over the spread of the novel coronavirus. Employees are working in the dealing room of Hana Bank in Jung-gu, Seoul. On the same day, the won-dollar exchange rate started trading at 1197.0 won, up 5.2 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Minwoo Lee] The impact of the heightened concerns over the novel coronavirus infection (Wuhan pneumonia) during the Lunar New Year holiday on the domestic stock market was less than expected. On that day, the KOSPI opened 1.5% lower than the previous trading day but steadily rose during the session, closing down only 0.01%. In contrast, the KOSDAQ closed up 0.68% compared to the previous day.

On the 3rd, the KOSPI closed at 2,118.88, down 0.13 points (0.01%). Although it started at 2,086.61, down 32.40 points (1.53%) from the previous day, indicating a downward trend, it steadily rose from around 10:30 a.m. and rebounded to the previous session's level.

In the securities market, individuals and institutions net bought 117.4 billion KRW and 170.3 billion KRW, respectively. Foreigners net sold 307.2 billion KRW.

Many sectors declined. The paper and wood sector had the largest drop at 3.18%. This was followed by steel and metals (2.08%), telecommunications (1.56%), electricity and gas (1.38%), and construction (1.21%). Some sectors rose, including textiles and apparel, which increased by 2.17%. Electricity and electronics (1.29%), food and beverages (0.75%), manufacturing (0.39%), and medical precision (0.01%) also saw gains.

Among the top 10 market capitalization stocks, LG Chem had the largest increase at 3.70%. Samsung SDI (2.90%), Samsung Electronics (1.42%), SK Hynix (1.28%), and Celltrion (0.91%) also rose. Conversely, Hyundai Motor (1.20%), NAVER (1.11%), Samsung Biologics (1.03%), Samsung C&T (0.92%), and Hyundai Mobis (0.62%) declined.

The KOSDAQ opened with a larger drop than the KOSPI but also began to rebound around 10:30 a.m., closing up 4.37 points (0.68%) at 646.85.

In the KOSDAQ market, individuals net sold 228.9 billion KRW, while foreigners and institutions net bought 153.9 billion KRW and 74.5 billion KRW, respectively.

Unlike the KOSPI, most sectors rose. Paper and wood (4.28%), general electrical and electronics (3.83%), internet (3.50%), food and tobacco (2.06%), and telecommunications equipment (2.01%) mainly increased. However, textiles and apparel fell 5.12%. Metals (2.25%) and non-metals (1.30%) also declined.

Most of the top 10 market capitalization stocks rose. Helixmith (4.92%), KMW (4.32%), and HLB (4.31%) recorded gains in the 4% range. Conversely, Celltrion Healthcare (2.10%), Hugel (0.98%), and CJ ENM (0.43%) fell.

Kiwoom Securities analyst Sangyoung Seo predicted that the KOSPI would fluctuate within the range of 2050 to 2200 going forward. Analyst Seo said, "Considering that the stock market experienced a short-term correction of 5-7% during the SARS outbreak in 2003 and the MERS outbreak in 2015, the domestic stock market is likely to find short-term support in the low 2100s, about 7% below the peak. However, if the number of infections continues to rise and uncertainties related to the U.S. presidential election emerge, there is a risk of further correction, but the extent will be limited."

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