KOSPI Closes at '3210' Amid Reality of 4th COVID-19 Wave... "Short-term Adjustment Inevitable"

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[Asia Economy Reporter Park Ji-hwan] The domestic stock market was significantly shaken as the fourth wave of COVID-19 became a reality due to the spread of the Delta variant.

On the 9th, the KOSPI closed at 3,217.95, down 34.73 points (1.07%) from the previous day. The index opened at 3,245.52, down 7.16 points (0.22%), and continued to decline throughout the session. During the day, it fell to 3,188.80, down 1.96% from the previous day, marking the lowest index in a month.

By investor type, institutions sold a net 507.6 billion KRW and foreigners sold a net 1.3423 trillion KRW, pulling the index down. Individuals bought a net 1.8005 trillion KRW, helping to cushion the index decline.

Among the top 10 KOSPI stocks by market capitalization, all showed weakness except Samsung SDI (0.55%). In particular, LG Chem (-3.03%), SK Hynix (-1.65%), NAVER (-1.54%), Hyundai Motor and Kakao (-1.53%) experienced significant declines.

The KOSDAQ closed at 1,028.93, down 5.55 points (0.54%) from the previous day. The index opened at 1,031.78, down 2.70 points (0.26%), and at one point dropped 1.98% to 1,013.91.

By investor type, individuals and institutions sold net 45.9 billion KRW and 2 billion KRW respectively, while foreigners bought a net 70.3 billion KRW.

Among the top market cap stocks, performances were mixed. Celltrion Healthcare fell 0.98% to 111,000 KRW compared to the previous trading day. Celltrion Pharm (-1.47%) and Seegene (-2.76%) also declined. On the other hand, Kakao Games (5.23%) and EcoPro BM (5.25%) rose.

Experts generally agree that a correction in the domestic stock market is inevitable for the time being. The recent record-high index has increased pressure, and concerns over a slowdown in economic recovery due to the spread of the Delta variant are stimulating investors' desire to realize profits.

Kim Ji-san, head of Kiwoom Securities Center, said, "At least in the current situation, sectors such as domestic demand, consumer goods, travel, and distribution will inevitably undergo price corrections," adding, "We need to consider corrections until the spread of the Delta variant subsides, using the price adjustments of contact-related companies as an opportunity." However, he assessed that there is no need for excessive concern as countries are unlikely to implement lockdown policies like in the early stages of COVID-19.

There is also a view that this correction should be seen as a buying opportunity for stocks with strong earnings prospects. In the short term, it is advantageous to focus on export stocks with favorable earnings outlooks and the healthcare sector, which is attempting to close the yield gap. Kim Young-hwan, a researcher at NH Investment & Securities, emphasized, "Although temporary corrections and somewhat high volatility may accompany this, the possibility of COVID pushing the economy into crisis again is low," and added, "It is necessary to focus on and buy undervalued stocks in automobiles, IT home appliances, steel, and healthcare."

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