Concerns Over COVID-19 Resurgence... KOSPI Closes Down Near 2330, KOSDAQ Rises to Around 780

[Asia Economy Reporter Oh Ju-yeon] The KOSPI, which showed weakness on the 27th due to the impact of the U.S. stock market's sharp decline caused by concerns over the resurgence of the novel coronavirus infection (COVID-19), the possibility of delayed economic recovery, and uncertainties related to additional economic stimulus measures, closed down near the 2330 level. The KOSDAQ index started lower but then reduced its losses and turned to rise, closing above the 780 level.

On the day, the KOSPI closed at 2330.84, down 0.56% from the previous trading day. During the session, the KOSPI fell as much as 0.97% to 2321.23 compared to the previous day but later narrowed its losses and even rose to 2349.33. Analysts attribute the narrowing losses to market participants shifting their focus to fundamentals (corporate earnings) and betting on stocks expected to improve their performance.

By investor type, individuals and foreigners were net buyers of 106.8 billion KRW and 106.1 billion KRW respectively, while institutions were net sellers of 249.5 billion KRW.

Among the top market capitalization stocks, Samsung Electronics (-0.99%), SK Hynix (-0.72%), and LG Chem (-2.17%) declined, while NAVER (0.71%), Samsung Biologics (0.79%), and Hyundai Motor (0.58%) closed higher.

The KOSDAQ index, which had been on a recent sharp decline, turned to rise during the session as investor sentiment improved.

On the day, the KOSDAQ index closed at 783.73, up 0.73% from the previous trading day. The index had fallen as much as 1.43% to 766.96 during the session but then reversed to an upward trend.

Among the top market capitalization stocks, except for Kakao Games (-0.11%), most stocks closed higher. Celltrion Healthcare (0.73%), Seegene (4.65%), HLB (0.44%), and Alteogen (2.50%) rose.

By investor type, individuals were net sellers of 227.4 billion KRW, while foreigners and institutions were net buyers of 237.3 billion KRW and 3.3 billion KRW respectively.

Seo Sang-young, a researcher at Kiwoom Securities, diagnosed, "The Korean stock market started lower due to the impact of the sharp decline in the U.S. stock market the previous day, with the resurgence of COVID-19 centered in the U.S. and Europe acting as a factor dampening investor sentiment."

Researcher Seo added, "Meanwhile, the downward revision of SAP's earnings guidance, which was one of the reasons for the decline in European and U.S. stock markets, ultimately caused market participants to shift their focus to fundamentals. As a result, domestic automobile-related stocks showed strength, and buying interest flowed mainly into untact-related stocks, leading to a successful turnaround to gains."

He continued, "In particular, the strength of the KOSDAQ, which had been on a recent sharp decline, also had a positive effect on improving investor sentiment. However, as the Chinese stock market reversed to a decline after an early rebound and selling pressure emerged, the domestic stock market also saw selling pressure, so there was not much autonomous movement."

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