KOSPI Falls Over 2% Amid COVID-19 Spread, Threatening 2000 Level... KOSDAQ at 620 Level

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] Fear of the spread of the novel coronavirus infection (COVID-19) is spreading in domestic and international financial markets, causing the KOSPI to continue its decline. It fell more than 2% in early trading, threatening the 2000-point level. The KOSDAQ index also dropped more than 2% for two consecutive days, falling to the 620 level.

On the 28th, the KOSPI opened at 2020.17, down 34.72 points (1.69%) from the previous trading day. The KOSPI, which started lower, is widening its losses in early trading due to simultaneous selling by foreign and individual investors. As of 9:33 a.m., it was at 2010.42, down 44.47 points (2.16%) from the previous day.

Overnight, major indices on the New York Stock Exchange (NYSE) plunged again due to concerns about the possibility of community spread of COVID-19 in the United States. On the 27th (Eastern Time), the Dow Jones Industrial Average closed at 25,766.64, down 1,190.95 points (4.42%) from the previous day. The Standard & Poor's (S&P) 500 index fell 137.63 points (4.42%) to 2,978.76, and the tech-heavy Nasdaq dropped 414.30 points (4.61%) to 8,566.48.

Seo Sang-young, a researcher at Kiwoom Securities, said, "The U.S. stock market continued to decline due to concerns over corporate earnings damage caused by the spread of COVID-19, but it is important to note that the decline narrowed at times during the session based on valuation stability, showing some signs of stabilization." He added, "Considering this, if the Korean stock market shows a correction today, some valuation concerns may be alleviated, so stability is expected rather than a decline as steep as that of the U.S. market."

Looking at the current trading trends by participant, foreign and individual investors are leading the index decline with net sales of 71 billion KRW and 43.9 billion KRW, respectively. On the other hand, institutional investors are net buyers with 109.3 billion KRW.

Most sectors are falling. Electric and gas utilities, medical precision instruments, banking, and transportation equipment sectors are among the top decliners.

Most of the large-cap stocks are also declining. Samsung SDI, Hyundai Motor, LG Chem, SK Hynix, KB Financial Group, and Samsung C&T are all down.

Currently, in the KOSPI market, 64 stocks are rising, including one hitting the upper price limit, while 811 stocks are falling with no stocks hitting the lower price limit. Twenty-four stocks are unchanged.

The KOSDAQ index is also plunging, falling more than 2%. It opened at 626.36, down 11.81 points (1.85%) from the previous day. In early trading, individual and institutional investors are selling, widening the losses. As of 9:33 a.m., it was at 621.30, down 16.87 points (2.64%) from the previous day.

Looking at the current supply and demand, individual and institutional investors are net sellers of 57 billion KRW and 12 billion KRW, respectively. Meanwhile, foreign investors are net buyers of 70.9 billion KRW.

Most sectors in the KOSDAQ market are also falling. Transportation equipment and parts, computer services, publishing and media reproduction, and general electric and electronics sectors are among the top decliners.

Among the large-cap stocks, HLB, EcoPro BM, Wonik IPS, Paradise, and KMW are down, while Celltrion Healthcare and Medytox are slightly up.

Currently, in the KOSDAQ market, 110 stocks are rising with no stocks hitting the upper price limit, while 1,183 stocks are falling, including one hitting the lower price limit. Twenty-seven stocks are unchanged.

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