Shock from the 4th Wave of COVID-19... KOSPI Falls Below the '3200 Level'

On the 9th, as the spread of COVID-19 intensifies, the KOSPI index is displayed in the Hana Bank dealing room in Euljiro, Seoul. On that day, the KOSPI started at 3,245.52, down 7.16 points (0.22%) from the previous session, showing a downward trend. Photo by Moon Honam munonam@

[Asia Economy Reporter Ji-hwan Park] As the fourth wave of COVID-19 intensifies, the domestic stock market is also experiencing significant volatility.

As of 9:51 a.m. that day, the KOSPI stood at 3,192.48, down 60.20 points (1.85%) from the previous day. This marks the first time in over a month since the 1st of last month that the KOSPI has fallen below the 3,200 mark during trading hours. The index opened at 3,245.52, down 7.16 points (0.22%) from the previous close, and the decline has deepened as time passed.

Overnight in the New York stock market, the Dow Jones Industrial Average (-0.75%), Standard & Poor's (S&P) 500 Index (-0.86%), and Nasdaq Index (-0.72%) all fell simultaneously. This is interpreted as investors’ growing concerns over the slowing pace of economic recovery amid the rapid global resurgence of COVID-19.

By investor type, foreigners and institutions led the stock price decline with net sales of 409.2 billion KRW and 65.8 billion KRW, respectively. Individuals defended the index with net purchases of 476.3 billion KRW. Among the top market capitalization stocks, all declined. Kakao (-2.76%), Naver (-3.08%), and SK Hynix (-2.47%) experienced significant drops.

At the same time, the KOSDAQ index was at 1,014.74, down 19.74 points (1.91%) from the previous day. The index opened at 1,031.78, down 2.70 points (0.26%), and continued its downward trend. Similar to the KOSPI, foreigners and institutions net sold 29.6 billion KRW and 11.2 billion KRW, respectively, while individuals net bought 39.8 billion KRW.

However, experts view the impact of the fourth wave of COVID-19 as temporary. Sang-hyun Park, a researcher at Hi Investment & Securities, said, "During the second wave, the adjustment range of the domestic KOSPI index was only about 6%, and during the third wave, the KOSPI continued its upward trend despite the spread of COVID-19. However, unlike the second and third waves, the rapid rise in the won-dollar exchange rate during this fourth wave is amplifying concerns about the extent of the stock market correction."

He added, "Except for the first wave, the second and third waves of COVID-19 had only temporary negative effects, so the impact of the fourth wave is also expected to be resolved in a short period."

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