Despite a 5% Plunge in US Stocks, KOSPI Holds Up Well... Closes Down 2% at 2132

Started at 2088, down 4%, but soon rebounded... Narrowed decline to 1% range
Individual buying dominance... Samsung Biologics rises 9%, hitting a new high

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Despite the U.S. stock market plunging more than 5% overnight, the domestic stock market fell by only about 2%, closing above the 2100 mark. Although it started the session down 4%, the decline narrowed thanks to individual investors' buying momentum.

On the 12th, the KOSPI index closed at 2132.30, down 2.04% (44.48 points) from the previous day. Compared to the major U.S. indices that fell more than 5% due to concerns over a second wave of COVID-19 despite economic reopening, the KOSPI's performance was considered relatively resilient. The market opened at 2088.24, down 4.07% (11.55 points) from the previous day, and initially dropped to 2084.63 but soon began to rebound. Around 3:15 PM, near the close, it rose to 2137.12, reducing the loss to 1.82% compared to the previous day.

In the Korea Stock Exchange, individual investors' buying supported the market decline. Individuals net purchased 554.1 billion KRW, while foreigners and institutions net sold 265.5 billion KRW and 283 billion KRW, respectively.

By sector, all sectors except pharmaceuticals and food & beverages declined. These two sectors rose by 3.89% and 1.02%, respectively. On the other hand, most sectors such as transportation & warehousing (-4.51%), insurance (-4.10%), machinery (-4.01%), and steel & metals (-3.97%) fell.

The top 10 market capitalization stocks showed mixed results. Stocks related to bio and untact (non-face-to-face) sectors rose, while the rest declined. Samsung Biologics, ranked third in market cap, had the largest gain of 7.7%. During the session, it reached a new high of 817,000 KRW, up 9.37%. Other gainers included Celltrion (3.3%), NAVER (0.6%), and Kakao (0.3%). Conversely, Hyundai Motor (-4.6%), Samsung Electronics (-3.6%), SK Hynix (-3.7%), LG Household & Health Care (-2.5%), and Samsung SDI (-2.0%) declined.

The KOSDAQ index closed at 746.06, down 1.45% (11.00 points) from the previous day. It also started the session down 4.51% at 722.91 but rebounded to narrow the losses.

In the KOSDAQ market, foreign investors showed strong buying. They net purchased 130.8 billion KRW, while individuals and institutions net sold 43.1 billion KRW and 17.4 billion KRW, respectively.

Most sectors showed a downward trend. Broadcasting services and telecommunications broadcasting services fell the most, by 3.59% and 3.58%, respectively. This was followed by telecommunications services (-3.54%), transportation (-3.41%), and entertainment & culture (-3.33%). On the other hand, paper & wood (0.39%), distribution (0.13%), and software (0.10%) sectors rose.

Among the top market cap stocks in KOSDAQ, pharmaceutical and bio-related stocks stood out with gains. Alteogen (3.2%), Celltrion Healthcare (2.0%), Celltrion Pharm (0.9%), and EcoPro BM (0.1%) rose. Conversely, CJ ENM (-3.8%), KMH (-2.1%), Studio Dragon (-1.9%), HLB (-1.1%), and Pearl Abyss (-1.0%) declined.

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