Mixed Reactions to Pfizer in Domestic Stock Market... KOSPI Closes at 2960, Narrowing Losses

KOSDAQ Closes Higher, Recovers 1000 Level
Airline Stocks Rally on Reopening Optimism

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The domestic stock market showed mixed reactions to Pfizer's news of developing an oral COVID-19 treatment. The KOSPI's decline, which was in the 1% range during the session, narrowed by the close, and the KOSDAQ turned to gains.

On the 8th, the KOSPI closed at 2,960.20, down 0.31% (9.07 points) from the previous day. It had fallen to as low as 2,930.90 by 10 a.m. but then reduced its losses.

Individual stocks showed mixed trends. The gaming industry lifted stock prices on expectations of business expansion into play-to-earn (P2E) and non-fungible tokens (NFTs), which utilize blockchain within games to generate monetary gains.

Additionally, airline stocks surged after Pfizer announced that the oral COVID-19 treatment 'Paxlovid' outperformed Merck's 'Molnupiravir' in clinical trial results. On that day, Korean Air, Asiana Airlines, and Jeju Air closed up 3.49%, 1.82%, and 5.21%, respectively. Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Airline stocks showed strength due to expectations of economic reopening."

However, Pfizer's Paxlovid dealt a blow to domestic medical-related stocks, as it was anticipated that Pfizer's product would capture most of the market share for COVID-19 treatments. Although many sector indices in the KOSPI showed strength that day, the pharmaceutical and medical precision sectors struggled. The pharmaceutical sector index fell the most, by 5.36%.

Following were medical precision (-4.04%), banks (-2.02%), non-metallic minerals (-1.00%), and financials (-0.81%). Conversely, textiles and apparel (2.80%), electric and gas utilities (1.97%), transportation and warehousing (1.58%), distribution (1.10%), and construction (1.03%) rose.

Foreign and institutional investors showed relatively strong selling pressure. Foreigners and institutions sold a net 123.4 billion KRW and 272.8 billion KRW, respectively. Individuals bought a net 367.7 billion KRW.

Among the top 10 market cap stocks, many showed weakness. Celltrion's decline was the largest at 5.74%. Following were Samsung Biologics (-4.75%), Kakao (-2.72%), LG Chem (-1.91%), Samsung SDI (-1.46%), and NAVER (-0.61%). Samsung Electronics (0.57%), SK Hynix (0.47%), and Kia (0.11%) rose. Hyundai Motor remained flat.

The KOSDAQ closed at 1,002.50, up 0.11% (1.15 points) from the previous day. It turned to gains after 2:50 p.m., regaining the 1,000-point level.

Foreign and institutional buying led the index's rise. Foreigners and institutions bought a net 4.6 billion KRW and 24 billion KRW, respectively. Individuals sold a net 27.2 billion KRW.

Many sector indices showed gains. Digital content rose the most at 4.22%, followed by entertainment and culture (3.39%), IT software & services (2.88%), broadcasting services (2.69%), and non-metallic minerals (2.37%). Meanwhile, pharmaceuticals (-3.05%), distribution (-2.45%), transportation equipment & parts (-1.66%), other services (-1.34%), and other manufacturing (-1.09%) declined.

Among the top 10 market cap stocks showing strength, Wemade led with a 10.84% increase, followed by CJ ENM (4.11%), Pearl Abyss (3.54%), EcoPro BM (1.54%), Kakao Games (1.33%), and L&F (0.53%). Celltrion Healthcare (-6.12%), HLB (-6.07%), Celltrion Pharm (-5.82%), and SK Materials (-0.85%) declined.

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