KOSPI Plunges Over 3% Despite US Stimulus, 1700 Level at Risk... KOSDAQ Nears Collapse Below 500 Level

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] The U.S. central bank, the Federal Reserve (Fed), implemented aggressive stimulus measures such as interest rate cuts and asset purchases in response to the impact of the novel coronavirus (COVID-19), but it failed to prevent the plunge of the domestic stock market. The KOSPI index fell more than 3% for three consecutive trading days, endangering the 1700 level, while the KOSDAQ index also dropped nearly 4%, bringing the collapse of the 500 level within sight.

On the 16th, the KOSPI closed at 1714.86, down 56.58 points (3.19%) from the previous day. The KOSPI started the day higher but showed mixed trends in the morning session, turning downward around 11 a.m. and continuously widening its losses to close down more than 3%.

Looking at trading trends by participant, foreign investors and institutional investors sold a net 682.9 billion KRW and 341.9 billion KRW respectively, pulling the index down. On the other hand, individual investors bought a net 926.1 billion KRW, marking eight consecutive trading days of net buying.

By sector, transportation equipment (-5.18%), banks (-4.65%), chemicals (-4.61%), and services (-4.38%) declined, while food and beverages (0.35%) rose.

Most of the top market capitalization stocks fell. Samsung SDI (-8.83%) and LG Chem (-8.22%) plunged nearly 10%, while NAVER (-6.63%), Hyundai Mobis (-5.83%), Samsung Biologics (-5.81%), and POSCO (-5.26%) also dropped significantly.

On the KOSPI market that day, 154 stocks rose without any hitting the upper limit, 721 stocks fell without any hitting the lower limit, and 30 stocks remained unchanged.

The KOSDAQ index also failed to rebound. The KOSDAQ started the day higher and showed gains of up to 3% in the morning session, but the gains gradually narrowed and turned downward around 1:30 p.m. It maintained mixed trends afterward but sharply widened losses near the close, finishing at 504.51, down 19.49 points (3.72%) from the previous trading day.

By participant, institutional investors sold a net 18.9 billion KRW, while foreign and individual investors bought net 14.6 billion KRW and 4.4 billion KRW respectively.

By sector, general electric and electronics (-7.69%), semiconductors (-6.53%), IT components (-5.46%), and telecommunications equipment (-5.05%) declined.

Among the top market capitalization stocks, EcoPro BM (-9.73%) plummeted, while Hugel (-5.70%), Soulbrain (-5.66%), and Celltrion Pharm (-4.64%) also fell. Conversely, Seegene surged 17.53%, and HLB (3.29%) and Studio Dragon (3.03%) also rose.

On the KOSDAQ market that day, 216 stocks rose including 4 hitting the upper limit, 1081 stocks fell including 4 hitting the lower limit, and 56 stocks remained unchanged.

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