KOSPI Falls Below 2000 for the First Time in 6 Months Amid Pandemic Fears... KOSDAQ Drops Over 4%

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] The KOSPI plunged due to fears of the novel coronavirus infection (COVID-19), falling below the 1900 mark. The KOSDAQ index also dropped more than 4%, threatening even the 600 level.

On the 28th, the KOSPI closed at 1987.01, down 67.88 points (3.30%) from the previous day. The KOSPI started the day lower and steadily widened its losses after the opening, falling below the 2000 mark around noon. It continued to decline, dropping nearly 70 points and closing near the 1980 level. This is the first time in about six months that the KOSPI has fallen below 2000 at closing, since September 4 last year (1988.53 points).

Looking at trading trends by participant, foreign investors sold a net 628.5 billion KRW, pulling the index down. Foreign investors have net sold 3.4588 trillion KRW in the securities market this week alone. In contrast, institutional and individual investors bought a net 362.4 billion KRW and 220.5 billion KRW, respectively.

Most sectors declined. Electric and gas utilities (-6.54%), transportation equipment (-4.26%), paper and wood (-4.00%), and chemicals (-3.74%) experienced relatively large drops.

Most of the top market capitalization stocks also fell. SK Hynix (-5.28%) and LG Chem (-5.15%) dropped more than 5%, while Hyundai Motor (-4.96%), Samsung SDI (-4.68%), NAVER (-4.40%), and Hyundai Mobis (-4.11%) also declined.

In the KOSPI market that day, 50 stocks rose, including 3 that hit the upper price limit, while 850 stocks fell with no stocks hitting the lower price limit. Nine stocks remained unchanged.

The KOSDAQ index also could not avoid a sharp decline. The KOSDAQ, which started lower that day, continuously widened its losses during the session and closed at 610.73, down 27.44 points (4.30%) from the previous trading day.

Regarding trading trends by participant, contrary to the securities market, individual and institutional investors sold a net 47.6 billion KRW and 19.3 billion KRW, respectively. Meanwhile, foreign investors bought a net 68.8 billion KRW.

By sector, transportation equipment and parts (-6.52%), telecommunications equipment (-5.63%), software (-5.57%), and medical and precision instruments (-5.42%) declined relatively sharply.

Among the top market capitalization stocks, HL Biopharma (-8.96%) fell nearly 10%, while Wonik IPS (-5.32%), KMH (-4.98%), Studio Dragon (-4.78%), Soulbrain (-4.53%), and CJ ENM (-4.19%) also declined.

In the KOSDAQ market that day, 70 stocks rose, including 1 that hit the upper price limit, while 1,256 stocks fell, including 1 that hit the lower price limit. Nineteen stocks remained unchanged.