[Asia Economy Reporter Oh Ju-yeon] KB Securities analyzed that whenever the spread of the novel coronavirus infection (COVID-19) was a concern, stock prices on Fridays were always unfavorable, and predicted that from the latter half of next week, a series of stimulus measures to be confirmed will draw attention.
According to the Korea Exchange on the 7th, the KOSPI closed at 2040.22, down 2.16% from the previous trading day. The KOSDAQ index also closed lower at 642.72, down 1.15%.
This was due to a sharp decline as the U.S. stock market also fluctuated amid the spread of COVID-19.
According to data released by KB Securities, the stock market consistently showed weakness on Fridays before weekends during the COVID-19 outbreak. On Friday, January 24, the KOSPI and S&P 500 recorded index changes of -0.9% each, and on Friday, January 31, they fell by -1.3% and -1.8%, respectively.
In February, on Friday the 21st, the KOSPI and S&P 500 dropped by 1.5% and 1.1%, respectively, and on Friday the 28th, they fell by 3.3% and 0.8%, respectively.
Researcher Lee Eun-taek of KB Securities analyzed, "When the spread of COVID-19 is a concern, investor sentiment is shaken by uncertainty about further spread ahead of the weekend, so stock prices on Fridays were always poor."
However, there were more rebounds during weekdays, which is explained by the emergence of countermeasures.
From the latter half of next week, events where stimulus measures can be confirmed are scheduled, drawing attention. First, on the 12th, the European Central Bank (ECB) will hold a monetary policy meeting to decide on whether to cut interest rates. Some expect the ECB to lower the deposit rate by 10 basis points.
Also, the Eurozone Finance Ministers' meeting on the 16th, the Federal Open Market Committee (FOMC) meeting on the 17th-18th, and the People's Bank of China interest rate decision on the 20th are lined up consecutively.
The researcher said, "The greater the stock market shock caused by COVID-19, the more attention is paid to the schedule of countermeasures."
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