KOSPI Falls Below '3200' Intraday for the First Time in a Month... Experts Say "Shock Will Be Short-Lived"

[Asia Economy Reporter Park Jihwan] The KOSPI is showing weakness, with the '3200 level' breaking down for the first time in about a month amid the full-scale onset of the fourth wave of COVID-19. However, experts analyze that the impact of the COVID-19 spread due to the Delta variant on the stock market will be limited and short-term.

As of 10:30 a.m. on the day, the KOSPI stood at 3,203.78, down 48.90 points (1.50%) from the previous day. The index started at 3,245.52, down 7.16 points (0.22%) from the previous session, and widened its decline. On this day, the KOSPI also fell below the 3,200 level intraday for the first time in a month since the 1st of last month.

By investor demand, foreigners and institutions led the stock price decline with net sales of 566.7 billion KRW and 153.4 billion KRW, respectively. Individuals defended the index with net purchases of 705.6 billion KRW.

Among the top market capitalization stocks, all stocks declined. NAVER (-2.61%), SK Hynix (-2.47%), and LG Chem (-2.44%) saw significant drops.

At the same time, the KOSDAQ index was at 1,021.14, down 13.34 points (1.29%) from the previous day. The index opened at 1,031.78, down 2.70 points (0.26%), and continued its downward trend.

Foreigners made net purchases of 43.7 billion KRW. In contrast, institutions and individuals made net sales of 26.7 billion KRW and 11.3 billion KRW, respectively.

Among the top market capitalization stocks, movements were mixed. Celltrion Healthcare recorded 109,900 KRW, down 1.96% from the previous trading day. Celltrion Pharm (-2.52%), Pearl Abyss (-1.39%), and SK Materials (-0.79%) declined. On the other hand, Kakao Games (1.12%), Seegene (3.65%), and EcoPro BM (2.49%) rose.

However, experts generally believe that the impact of the fourth wave of COVID-19 on the financial market will be temporary. Park Sanghyun, 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," adding, "Unlike the second and third waves, the won-dollar exchange rate is soaring during this fourth wave, which is amplifying concerns about the stock market correction." However, he added, "Except for the first wave, the spread of COVID-19 during the second and third waves did not completely damage the economic fundamentals and only had a temporary negative impact, so the impact of the fourth wave is also expected to be resolved in the short term."

Kim Jisan, head of Kiwoom Securities Center, also said, "We need to consider a period of adjustment until the spread of the Delta variant virus calms down for the time being," adding, "However, it is not expected to lead to country-wide lockdowns like in the early stages of COVID-19, so there is no need to be excessively worried."

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