Economic Recovery Delayed? KOSPI Retreats to 2112 Amid Weakening Investor Sentiment, Drops Over 2%

Concerns Over COVID-19 Resurgence and Economic Uncertainty Highlighted
Foreign and Institutional Investors Sell Off in Tandem on KOSPI... Index Drops 2.27%
KOSDAQ Index Closes Just Above 750 Threshold

[Asia Economy Reporter Oh Ju-yeon] On the 25th, the KOSPI closed down over 2% as investment sentiment weakened due to concerns over the second wave of the novel coronavirus infection (COVID-19) and anxiety over delayed economic recovery. The KOSDAQ index also fell over 1% but barely maintained the 750 level.

On that day, the KOSPI closed at 2,112.37, down 2.27% from the previous trading day. The domestic stock market was influenced by the New York stock market, which closed down more than 2% the day before, opening at 2,130.45, down 1.44% from the previous day, but then narrowed the decline. During the morning session, the index seemed to rise to the 2,140 level, but it fell further as foreign and institutional investors sold off simultaneously.

Among the top market capitalization stocks, Samsung Electronics (-1.89%), SK Hynix (-1.98%), Samsung Biologics (-0.49%), NAVER (-3.41%), Celltrion (-0.94%), and LG Chem (-3.29%) all declined together.

By investor type, individuals net bought stocks worth 1.3021 trillion KRW, while foreigners and institutions net sold stocks worth 280.4 billion KRW and 1.0436 trillion KRW, respectively.

The KOSDAQ index closed at 750.36, down 1.20% from the previous trading day.

Among the top market capitalization stocks, except for Celltrion Healthcare (1.59%), most closed lower. Stocks such as HL Biopharma (-2.44%), Celltrion Pharm (-0.22%), Alteogen (-0.42%), Seegene (-2.55%), and Pearl Abyss (-3.42%) declined.

In the KOSDAQ market as well, individuals defended the index decline. Individuals net bought stocks worth 198 billion KRW, while foreigners and institutions sold stocks worth 79.4 billion KRW and 106.7 billion KRW, respectively.

The decline in the stock market that day is analyzed to be due to weakened investment sentiment caused by concerns over delayed economic recovery due to the resurgence of COVID-19 and the International Monetary Fund (IMF)'s announcement of a downward revision of the global growth forecast.

Lee Kyung-min, a researcher at Daishin Securities, said, "The COVID-19 issue is again stimulating volatility in the global financial market," adding, "In the short term, anxiety is increasing, and as a result, a phase is expected to unfold in which the gap between market expectations and the reality of fundamentals narrows."

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