From the First Stock Market Day in May, Individuals Bought Stocks Worth 1.7 Trillion Won... Index Falls Over 2%, KOSPI Breaks Below 1900

by Oh Jooyean

Published 04 May.2020 16:12(KST)

[Asia Economy Reporter Oh Ju-yeon] Contrary to the stock market adage "Sell in May and go away," individual investors enjoyed shopping by scooping up stocks worth 1.7 trillion won from the very first day of the May stock market.

On May 4, the first trading day after the two-day holiday on April 30 and May 1, the KOSPI closed at 1,895.37, down 2.68% from the previous trading day. This was the first time in four trading days since April 24 that the index fell below the 1,900 level.

During the domestic market holiday, the U.S. stock market declined due to concerns over economic recession and the intensification of the U.S.-China trade dispute, which is believed to have influenced the domestic stock market on that day.

Ahead of the market opening this month, the stock market adage "Sell in May" was circulating, drawing attention to the market conditions following the rebound from the novel coronavirus infection (COVID-19). Securities firms predicted the KOSPI band ranging from as low as 1,700 to as high as 2,000, expecting a short-term correction amid a rising trend.

However, individual investors swept up stocks worth 1.6985 trillion won in the securities market in just one day, filling their shopping baskets. As analyses from the securities industry suggested that "there will be short-term corrections in the second quarter but the overall trend will be upward," it is interpreted that investors took advantage of the index decline as a buying opportunity at a low price.

Among the top market capitalization stocks, Samsung Electronics (-3.00%), SK Hynix (-3.23%), Samsung Biologics (-4.30%), and Celltrion (-3.33%) declined. NAVER and Kakao closed up 0.76% and 1.36%, respectively, compared to the previous trading day.

The KOSDAQ index closed at 641.91, down 0.51% from the previous trading day.