KOSPI Closes Down 2208 Due to COVID-19 and Apple Slump... KOSDAQ Also Drops Over 1%

[Asia Economy Reporter Oh Ju-yeon] The domestic stock market closed down by over 1%. This is interpreted as being influenced by the downward revision of the economic growth forecast due to the impact of the novel coronavirus infection (COVID-19), as well as news that Apple's first-quarter sales this year may fall short of targets due to production disruptions and weak demand in China caused by the COVID-19 situation.

On the 18th, the KOSPI closed at 2208.88, down 1.48% from the previous trading day. Foreigners and institutions sold 306.8 billion KRW and 526.1 billion KRW worth of stocks respectively, widening the decline. Individuals net bought stocks worth 765.4 billion KRW.

Among the top market capitalization stocks, all top 10 stocks including Samsung Electronics (-2.76%) and SK Hynix (-2.86%) declined.

The KOSDAQ index also closed at 682.92, down 1.40% from the previous trading day. Foreigners and institutions net sold 124.6 billion KRW and 139.4 billion KRW worth of stocks respectively, while individuals net bought 263.3 billion KRW worth of stocks.

Among the top market capitalization stocks, except for Celltrion Healthcare (0.73%) and Pearl Abyss (0.11%), stocks such as HL Biopharma (-1.91%) and KM Healthcare (-4.26%) all declined.

Lee Kyung-min, a researcher at Daishin Securities, diagnosed, "Since the KOSPI rebound in February was led by IT, it is highly likely that IT stocks will undergo relative price adjustments whenever concerns about COVID-related economic and earnings slowdowns arise for the time being."

The researcher forecasted, "However, considering the effects of global policy mix that will be in full swing from the second quarter, the KOSPI's pattern of lower in the first half and higher in the second half of this year remains valid."