Concerns Over Delta Variant Trigger Nasdaq Plunge, Domestic Market Also Declines... Weakness Around '3220 Level'

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] As the COVID-19 Delta variant spreads, concerns that global growth will slow have negatively impacted the domestic stock market following the U.S. stock market.

As of 9:14 a.m. on the 20th, the KOSPI is at 3,224.36, down 0.61% (19.68 points) from the previous trading day. The index opened the day at 3,223.24, down 20.80 points (0.64%) from the previous day.

This is interpreted as investors' concerns about a slowdown in global economic growth increasing due to the worldwide spread of the Delta variant. On the 19th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,962.04, down 725.81 points (2.04%) from the previous session. The Standard & Poor's (S&P) 500 index also plunged 68.67 points (1.59%) to close at 4,258.49. The Nasdaq index, which is tech-stock focused, ended trading at 14,274.98, down 152.25 points (1.06%). This marked the longest losing streak in five trading days since October last year.

Han Ji-young, a researcher at Kiwoom Securities, explained, "The Korean stock market is expected to show a downward trend as the sharp drop in the U.S. stock market expands risk-averse sentiment within the Asian region. Since concerns about delayed economic recovery due to the Delta variant were the main reason for the U.S. stock market plunge, domestic stocks sensitive to the economy such as materials, industrials, and economic reopening-related stocks are likely to face selling pressure today."

By investor type, institutions alone purchased stocks worth 193.7 billion KRW. In contrast, individuals and institutions sold stocks worth 160.7 billion KRW and 31.1 billion KRW, respectively.

Among the top market capitalization stocks, most declined. Kakao fell sharply by 1.52%, while Samsung Electronics (-0.63%), SK Hynix (-0.84%), NAVER (-0.79%), and LG Chem (-0.73%) also dropped. On the other hand, Samsung Biologics and Celltrion rose by 1.09% and 2.66%, respectively.

At the same time, the KOSDAQ index is at 1,043.74, down 0.58% (6.09 points) from the previous trading day. The index opened at 1,040.99, down 8.84 points (0.84%) from the previous day, but the decline is narrowing.

By investor type, individuals are selling stocks worth 37.4 billion KRW. Institutions are also net sellers of stocks worth 13.3 billion KRW. Foreigners purchased stocks worth 53.7 billion KRW.

Among the top market capitalization stocks, there were mixed movements. Celltrion Healthcare rose 2.14% to 114,700 KRW compared to the previous day. Kakao Games (1.19%) and Celltrion Pharm (2.17%) also increased. Conversely, EcoPro BM (-3.69%) and CJ ENM (-0.52%) declined.

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