Shaky Pharmaceutical and Semiconductor Stocks... KOSPI Falls to 2937 Level

Concerns Over Omicron Ease and Weakness in US Semiconductor Sector Impact Domestic Stock Market
KOSDAQ Shows Intraday Gains of Over 1%

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The KOSPI is weak due to selling pressure from foreigners and institutions. Pharmaceutical stocks are sluggish as concerns over the new COVID-19 variant 'Omicron' ease. Additionally, domestic semiconductor-related stocks were shaken by the weakness in the U.S. semiconductor sector.

As of 11 a.m. on the 3rd, the KOSPI recorded 2,937.43, down 0.27% (7.84 points) from the previous day. It turned to an increase at 10:09 a.m. but soon declined again, showing volatility.

The sluggishness in the pharmaceutical and semiconductor sectors appears to be affecting the KOSPI. Pharmaceutical stocks attracted market attention amid concerns over the spread of Omicron. However, as the impact of Omicron was less than expected, pharmaceutical stocks also showed weakness.

Seo Sang-young, a researcher at Mirae Asset Securities, explained, "Although a second Omicron case occurred in the U.S., it showed mild symptoms like the first case," adding, "Meanwhile, Pfizer announced that its vaccine's effectiveness against Omicron has not significantly decreased."

The weakness in the U.S. semiconductor sector also seems to be influencing the domestic stock market. Foreigners actively net bought semiconductor stocks the previous day, which helped the KOSPI rise, but it is now hesitating again due to the weakness in the U.S. semiconductor sector. On the 2nd (local time), semiconductor-related stocks such as Micron, AMAT, and Lam Research fell by 2.67%, 3.42%, and 4.62%, respectively.

Selling pressure from foreigners and institutions led to the index decline. Foreigners and institutions net sold 14.2 billion KRW and 324.8 billion KRW, respectively. Individuals net bought 350.7 billion KRW.

Most sectors rose. The textile and apparel sector had the largest gain of 4.48%. This was followed by telecommunications (1.07%), non-metallic minerals (0.96%), transportation and warehousing (0.74%), and electricity and gas (0.62%). Meanwhile, sectors such as electrical and electronics (-1.55%), pharmaceuticals (-1.19%), manufacturing (-0.82%), medical precision (-0.41%), and steel and metals (-0.24%) declined.

Many of the top 10 market capitalization stocks showed weakness. SK Hynix had the largest drop of 2.92%, interpreted as a decline due to the weakness in the U.S. semiconductor sector. This was followed by LG Chem (-2.06%), Samsung Electronics (-1.58%), Samsung Biologics (-0.67%), Kakao (-0.41%), and NAVER (-0.25%). KakaoBank (3.23%), Samsung SDI (0.29%), Hyundai Motor (0.24%), and Kia (0.12%) rose.

At the same time, the KOSDAQ recorded 987.85, up 1.07% (10.42 points) from the previous day. Although it fell to 978.50 at 9:42 a.m., reducing the gain, it is rising again.

Individual buying pressure is relatively strong. Individuals purchased 45 billion KRW. Foreigners and institutions net sold 72.3 billion KRW and 2.8 billion KRW, respectively.

All sectors except distribution rose. The medical and precision instruments sector had the largest gain of 2.31%, followed by digital content (2.18%), general electrical and electronics (1.92%), broadcasting services (1.95%), and entertainment and culture (1.91%). Distribution fell by 0.63%.

Many of the top 10 market capitalization stocks showed strength. Wemade had the largest gain of 3.73%, followed by EcoPro BM (3.61%), Pearl Abyss (3.02%), Kakao Games (1.86%), L&F (0.68%), and HLB (0.55%). Seegene (-2.71%), Celltrion Healthcare (-2.04%), and Celltrion Pharm (-1.48%) declined. SK Materials remained flat.

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