[Asia Economy Reporter Oh Ju-yeon] On the 30th, the KOSPI, which started the day down in the 1670s, recovered its losses in the afternoon and jumped close to the 1720 level, settling above 1700. The KOSDAQ index surged 3% and closed up around the 540 level.
On this day, the KOSPI closed at 1717.12, down 0.04% from the previous trading day. Individual investors net bought stocks worth 197.5 billion KRW, while foreigners sold stocks worth 421.5 billion KRW. Institutions purchased stocks worth 219 billion KRW.
Among the top market capitalization stocks, Samsung Electronics (-1.24%), LG Chem (-0.82%), Hyundai Motor (-0.12%), LG Household & Health Care (-0.72%), and Samsung SDI (-2.02%) declined, while SK Hynix closed up 0.72%.
The KOSDAQ index closed at 542.11, up 3.69% from the previous trading day. Foreigners net bought stocks worth 39 billion KRW, while individuals and institutions sold stocks worth 0.6 billion KRW and 26.5 billion KRW, respectively.
Among the top market capitalization stocks, all of the top 10 stocks including Celltrion Healthcare (1.62%), HL Biopharma (1.05%), Seegene (4.40%), Pearl Abyss (2.34%), and Celltrion Pharm (6.74%) closed higher.
Lee Kyung-min, a researcher at Daishin Securities, said, "A global economic recession is becoming a foregone conclusion," adding, "Given the current situation, it is difficult to see any improvement, but the global stock markets and KOSPI are fluctuating after a sharp rebound rather than further sharp declines." He added, "It appears that the panic market phase has ended and a normalization and retracement process is underway."
Lee explained, "The start of the global panic market in March was due to the global spread of the novel coronavirus infection (COVID-19), combined with a sharp drop in oil prices, expanded credit risks in energy companies and emerging market commodity exporters, and a surge in dollar demand," adding, "Therefore, since the Federal Reserve's unlimited asset purchase and additional corporate support measures announced on the 23rd of last week, credit risks have been controlled, and as a result, the global financial market is attempting to normalize after the panic phase."
He diagnosed that the recent global financial market is reflecting policy expectations after panic selling.
Lee said, "Starting in April, monetary policy, corporate support policies, and fiscal policies will begin to be implemented," adding, "During the 2008-2009 financial crisis, the global financial market stabilized and showed recovery with the implementation of policies, so unless there are new or sudden adverse factors, the likelihood of a panic market like March reoccurring is low."
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