KOSPI Falls Over 1% with Foreigners Selling for 4 Consecutive Trading Days... KOSDAQ Drops 2.5%

[Asia Economy Reporter Oh Ju-yeon] Due to the impact of the novel coronavirus infection (COVID-19), the domestic stock market index has been declining continuously. Contrary to market expectations anticipating an interest rate cut, on the 27th, the Bank of Korea's Monetary Policy Committee kept the base interest rate steady at the current annual rate of 1.25%. As a result, the KOSPI, which had briefly risen during the morning session, later expanded its decline. The KOSDAQ fell more than 2.5%, dropping to the high 630 range.

On this day, the KOSPI closed at 2054.89, down 1.05% from the previous trading day. Individuals and institutions net bought stocks worth 348.3 billion KRW and 7.1 billion KRW respectively, while foreigners sold stocks worth 409.8 billion KRW, continuing their selling streak for four consecutive trading days. The total net selling amount during this period exceeded 2 trillion KRW.

Lee Kyung-min, a researcher at Daishin Securities, stated, "In a situation where the spread of the COVID-19 outbreak and the resulting economic uncertainty are intensifying, the news of the interest rate freeze has triggered concerns about economic shocks. This has worsened investor sentiment, leading the stock market to turn downward and expand its decline."

All of the top 10 stocks by market capitalization fell, with Samsung Electronics (-1.06%), SK Hynix (-1.90%), NAVER (-2.67%), and LG Chem (-1.77%) among those whose stock prices dropped.

The KOSDAQ index plunged 2.51% from the previous trading day, closing at 638.17. Individuals net bought stocks worth 326.8 billion KRW, while foreigners and institutions sold stocks worth 235.1 billion KRW and 97.2 billion KRW respectively.

The researcher analyzed, "In the case of KOSDAQ, IT-related stocks were sluggish due to simultaneous net selling by foreigners and institutions, but pharmaceuticals showed strength. Following the application for clinical trial plans for COVID-19 treatments, Komipharm's stock surged more than 30%, and related sector stocks supported the industry's rise."

He added, "Fear tends to peak in the early stages. If the rate of increase in new confirmed cases stabilizes over this week and next, investor sentiment is expected to improve rapidly."

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