KOSPI Ends Lower in Late Session... Holds 1800 Level "EU Failure to Agree on COVID-19 Stimulus Package Cited as Cause"

[Asia Economy Reporter Oh Ju-yeon] The domestic stock market closed lower near the end of trading. The KOSPI, which had risen over 1% during the session to reach the 1840 level, gave back all its gains just before the close, ultimately maintaining the 1800 level but closing down close to 1%. The KOSDAQ index also surrendered its gains of over 1% and closed with a slight increase of around 0.08%.

On the 8th, the KOSPI closed at 1807.14, down 0.90% from the previous trading day. By investor type, individuals bought stocks worth 456.6 billion KRW, while foreigners and institutions sold stocks worth 139.6 billion KRW and 282.9 billion KRW, respectively.

On this day, the KOSPI rose over 1% during the morning session, reaching 1842.16, but gave back its gains and turned negative in the afternoon.

Most of the large-cap stocks closed lower. Samsung Electronics fell 2.02% from the previous day, and SK Hynix dropped 1.52%, closing at 48,600 KRW and 84,500 KRW, respectively. Samsung Biologics (-1.04%), NAVER (-1.77%), and Celltrion (-1.43%) also declined.

LG Chem (1.29%) and Samsung SDI (2.04%) closed higher.

The KOSDAQ index closed at 607.37, up 0.08% from the previous day. Individuals were net buyers of 163.7 billion KRW, while foreigners and institutions sold stocks worth 101.6 billion KRW and 36.0 billion KRW, respectively.

Among the large-cap KOSDAQ stocks, Celltrion Healthcare (-2.79%), HL Biopharma (-1.60%), and Pearl Abyss (-2.35%) declined, while Seegene (7.89%) and KMH (3.25%) rose.

The reason for the market's decline near the close was explained as news that the European Union (EU) failed to reach an agreement on a stimulus package to respond to the novel coronavirus (COVID-19) crisis.

Seo Sang-young, a researcher at Kiwoom Securities, analyzed, "Volatility in oil prices expanded, and the EU finance ministers' meeting failed to reach an agreement on a joint COVID-19 response."

Mario Centeno, Chair of the Eurogroup (Eurozone finance ministers' meeting), mentioned on Twitter that "EU member states' finance ministers met for 16 hours and came close to an agreement but did not finalize it."