Only Individuals Swept by 'Omicron Fear' Panic Sell 1 Trillion... Barely Holding 2,900 and Collapse of 1,000 Stocks

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] The KOSPI index, after recovering some of its intraday losses, lost momentum again and closed down nearly 1%. However, it managed to hold the 2900 level.

On the 29th, the KOSPI closed at 2909.32, down 27.12 points (0.92%) from the previous trading day. It opened at 2906.15, down 30.29 points (1.03%), and broke below the 2900 level, even touching the 2890 level. This was the first time in over 10 months since January 4th (2869.11) that the KOSPI fell below 2900 during intraday trading. However, it later reduced its losses and rose to the 2920 level, maintaining this trend into the afternoon before losing strength again.

The KOSDAQ started the day at 986.64, down 19.25 points (1.91%), and closed at 992.34, down 13.55 points (1.35%). It fell below the 1000 level for the first time in 12 trading days since surpassing it on the 12th.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, “Due to the financial market shock caused by the emergence of Omicron at the end of last week, the KOSPI dropped to the 2890 level immediately after opening. The caution regarding the spread of the variant virus, the resulting global economic uncertainty, and the potential worsening of supply chain bottlenecks continues.”

Despite panic selling by individual investors triggered by Omicron’s emergence, the index’s downside was defended by net buying from institutions and foreigners. On this day, individuals sold a net 760.9 billion KRW and 316.4 billion KRW in the KOSPI and KOSDAQ markets respectively. In contrast, institutions bought a net 714.4 billion KRW and 81.1 billion KRW in both markets, defending the index. Foreigners also showed a buying advantage with net purchases of 44.6 billion KRW and 217.5 billion KRW.

By sector in the KOSPI, most showed weakness. Banks rose more than 1%, and pharmaceuticals increased slightly by less than 1%. All other sectors declined, with machinery falling over 5%, and non-metallic minerals, iron and metals, distribution, construction, transportation equipment, and electricity and gas sectors dropping by around 2%.

In the KOSDAQ sectors, most closed lower. Telecommunication services fell more than 4%. Following that, telecommunication broadcasting services, finance, broadcasting services, and software dropped over 3%, while construction, computer services, other manufacturing, machinery and equipment, non-metallic minerals, general electrical and electronics, distribution, transportation equipment and parts, and metals declined by more than 2%.

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