KOSPI Closes Down 0.46% Amid Concerns Over Delta Variant Spread

Individual Investors Net Buy 1.23 Trillion KRW Alone
KOSDAQ Closes Higher Led by IT and Game Stocks

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] As concerns over the spread of the Delta variant virus reduced investor sentiment toward risky assets, the KOSPI closed lower. In contrast, the KOSDAQ index closed higher, showing gains mainly in small and mid-sized IT and gaming sectors.

On the 29th, the KOSPI ended the session at 3,286.68, down 0.46% (15.21 points) from the previous trading day. The index opened at 3,305.36, up 0.10% (3.37 points) from the previous day, but during the session, the decline widened to 3,276.63 (0.77%). Looking at investor trends, foreigners and institutions increased their net selling. Foreigners and institutions sold stocks worth 550.2 billion KRW and 681 billion KRW respectively, while individuals were the sole net buyers with purchases totaling 1.2329 trillion KRW.

The KOSPI started higher influenced by the previous day’s Nasdaq index rise centered on large tech stocks, but as Asian markets weakened due to concerns over the Delta variant, the decline deepened. Kyungmin Lee, a researcher at Daishin Securities, explained, “The pharmaceutical sector, including therapeutics and test kit stocks, showed strength amid the spread of the Delta variant,” adding, “The possibility of additional movement restrictions appears to have heightened investor anxiety.”

Despite the Philadelphia Semiconductor Index rising over 2% the previous day, Samsung Electronics and SK Hynix fell by 1.10% and 0.79% respectively. Other stocks such as Hyundai Motor (-0.62%) and Celltrion (-0.28%) also declined. On the other hand, Kakao (1.94%), NAVER (0.86%), LG Chem (1.08%), Samsung Biologics (0.36%), and Samsung SDI (1.03%) rose.

Conversely, the KOSDAQ index closed higher. The index ended the day at 1,022.52, up 0.45% (4.61 points) from the previous trading day. It opened at 1,019.64, up 0.17% (1.73 points), and surged intraday to 1,026.83 (0.88%).

Investor trends showed individuals and foreigners bought stocks worth 42.1 billion KRW and 34.8 billion KRW respectively, while institutions were the sole net sellers with sales totaling 47.6 billion KRW. This is analyzed to be influenced by the previous day’s U.S. market, where small and mid-sized IT stocks rose due to the Mobile World Congress (MWC) and the International Supercomputing Conference (ISC).

By sector, digital content (5.89%), IT software (2.87%), and telecommunications services (1.16%) showed the largest gains. Among gaming-related stocks, Pearl Abyss surged about 20% on news of China’s license supply, while Kakao Games (8.3%), Netmarble (3.8%), and Wemade (3.2%) also rose.

Among the top market capitalization stocks, EcoPro BM (1.89%), CJ ENM (0.62%), and SK Materials (3.32%) rose, while Celltrion Pharm (-0.26%), Seegene (-2.63%), and HLB (-1.05%) declined.

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