KOSPI Falls Below 1700 Again, Closing Down Over 1% Amid 'Anxiety' and 'Expectations'

[Asia Economy Reporter Oh Ju-yeon] On the 26th, the KOSPI rebounded, rising to the 1730 level during the session, but gave up its gains before the close and ended down over 1%. This is interpreted as a result of profit-taking following recent gains, uncertainty over the implementation of the US stimulus package, and attention focused on the US unemployment claims scheduled to be announced that night. The securities industry evaluates that concerns about a recession and the realization of stimulus policies coexist.

[Image source=Yonhap News]

On the day, the KOSPI closed at 1686.24, down 18.51 points (-1.09%) from the previous trading day. Individual investors net bought 717.7 billion won worth of shares, but foreigners and institutions sold 534.6 billion won and 215 billion won worth, respectively.

Among the top market capitalization stocks, most closed lower, including Samsung Electronics (-1.75%), SK Hynix (-4.50%), Samsung Biologics (-3.89%), NAVER (-2.24%), Celltrion (-0.82%), LG Chem (-2.60%), and Samsung SDI (-3.69%). Hyundai Motor rose 0.47% from the previous day to 84,900 won.

The KOSDAQ index rose despite net selling by foreigners and institutions, led by net buying from individuals. The KOSDAQ index closed up 10.93 points (2.16%) at 516.61. Individuals net bought 159.3 billion won, while foreigners and institutions net sold 89.7 billion won and 53.1 billion won, respectively.

Among the top market capitalization stocks on KOSDAQ, Celltrion Healthcare (-1.64%), HL Biotech (-2.13%), CJ ENM (-0.50%), and Studio Dragon (-1.16%) declined.

By sector, pharmaceuticals showed strength. In particular, expectations for global exports related to COVID-19 diagnostic kits expanded, with Seegene soaring to the daily upper limit, pushing its stock price to around 114,500 won and elevating it to the third position in market capitalization.

Meanwhile, as economic indicators for the first quarter of this year were confirmed, signs of a recession are becoming visible.

Lee Kyung-min, a researcher at Daishin Securities, stated, "Singapore's Ministry of Trade and Industry has provisionally estimated that the GDP growth rate for the first quarter of 2020 fell 2.2% year-on-year, which is below the market consensus of -1.5% and the lowest since the 2009 financial crisis," adding, "The US unemployment claims to be announced tonight could also fuel concerns about a US recession."

He explained that while the global stock market is unlikely to enter another panic phase, short-term volatility expansion is inevitable.

Researcher Lee said, "The global financial market has largely reflected concerns about recession and credit crisis, and considering that monetary and financial policies of various countries have been strengthened and additional stimulus and fiscal policies are anticipated, rather than a second panic phase, there may be an expansion of anxiety due to the realization of concerns, leading to short-term sharp fluctuations."

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