KOSPI Closes Lower Amid US-China Tensions... KOSDAQ Recovers to 800 Level for First Time in 1 Year 9 Months

Q2 Growth Rate -3.3%... Lowest in 22 Years Since the Foreign Exchange Crisis
KOSPI Declines Amid Increased Uncertainty
KOSDAQ Index Rises Led by Pharmaceutical, Bio Sectors and Diagnostic Kit Stocks

[Asia Economy Reporter Oh Ju-yeon] In the second quarter of this year, the real Gross Domestic Product (GDP, preliminary figure) recorded 447.4 trillion won, a 3.3% decrease compared to the previous quarter, showing the lowest growth rate since the first quarter of 1998 (-6.8%), expanding uncertainty about the speed of economic recovery. Accordingly, on the 23rd, the KOSPI closed slightly lower. However, the KOSDAQ index jumped to the 800 level, supported by net purchases from foreigners. It is the first time in 1 year and 9 months since October 2018 that the KOSDAQ index has recovered to the 800 level.

According to the Korea Exchange on the 23rd, the KOSPI opened at 2,227.24, down 0.06% from the previous trading day, then widened its losses during the session, falling to 2,202.99, down 1.15%. However, due to purchases by individual investors, the 2,200 level was maintained, and the market closed at 2,216.19, down 0.56% from the previous trading day.

Among the top market capitalization stocks, Samsung Electronics (-1.10%), SK Hynix (-0.96%), and Samsung Biologics (-1.90%) declined, while untact-related stocks such as NAVER (5.19%) and Kakao (3.62%) rose. Hyundai Motor also showed strength, rising 5.06% compared to the previous trading day.

By supply and demand, individuals net purchased stocks worth 778.2 billion won, while foreigners and institutions sold stocks worth 206.7 billion won and 590.8 billion won, respectively.

The KOSDAQ index surpassed the 800 level for the first time in 1 year and 9 months. On this day, the KOSDAQ index closed up 0.84% at 801.69 compared to the previous trading day. It is the first time since October 2018 that the KOSDAQ index closed above the 800 level.

By sector, the pharmaceutical and bio sectors centered on COVID-19 vaccines, therapeutics, and diagnostic kit-related stocks showed strength.

Among the top market capitalization stocks, Seegene closed at 210,900 won, up 12.72% from the previous trading day. Seegene reached 224,000 won during the session, setting a 52-week high. Considering that the stock price was in the low 30,000 won range in early February before the spread of COVID-19, it has surged about sevenfold.

Alteogen also recorded 185,000 won, up 19.82% from the previous trading day.

With Tesla's fourth consecutive quarter of profitability, EcoPro BM, listed on the KOSDAQ market among secondary battery-related stocks, also showed strength on this day. Among KOSPI-listed companies, large secondary battery stocks such as LG Chem and Samsung SDI showed little fluctuation, but EcoPro BM, ranked fifth in market capitalization on the KOSDAQ market, closed at 144,000 won, up 4.27% from the previous trading day. It also set a 52-week high during the session.

Additionally, KMH, a 5G-related stock, closed up 1.64% at 74,200 won compared to the previous trading day, and Genexine (4.90%) and Studio Dragon (2.34%) also rose.

Lee Kyung-min, a researcher at Daishin Securities, said, "Until recently, the stock market continued to rise due to economic indicator surprises and expectations for COVID-19 vaccine and therapeutic development, but continuous surprise momentum and expectations require stronger surprises and momentum," adding, "If results are worse than expected under these circumstances, volatility in the financial market is inevitable."

Lee also analyzed, "However, the fact that the second quarter of this year is the low point of the 2020 GDP growth rate, that it is better than the GDP growth rates of major global countries, and that better economic results are expected in the second half of the year than in the second quarter remain valid," adding, "Short-term volatility is inevitable, but the future direction is becoming clearer."

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