KOSPI Starts Down Over 1% Amid Concerns of COVID-19 Resurgence

KOSPI Falls Below 1900 After 6 Trading Days
Reflecting Concerns Over Additional COVID-19 Spread and US-China Trade Frictions

[Asia Economy Reporter Minji Lee] The KOSPI opened down by over 1%. The decline is attributed to concerns over delays in the reopening of the U.S. economy and heightened tensions in the U.S.-China trade conflict.

[Image source=Yonhap News]

At 9:10 a.m. on the 13th, the KOSPI was trading at 1903.64, down 0.96% (18.53 points) from the previous session. The index opened at 1897.50, down 1.28% (24.67 points) from the previous close. On the Korea Exchange, foreigners and institutions sold stocks worth 7.9 billion KRW and 26.7 billion KRW respectively, while individuals purchased stocks worth 33.1 billion KRW.

By sector, pharmaceuticals (1.4%) and telecommunications (0.05%) rose, while food and beverages (-0.22%) and services (-0.47%) saw relatively smaller declines.

Among the top market capitalization stocks, Samsung Electronics traded at 47,350 KRW, down 1.15% from the previous session. SK Hynix (-2.45%), LG Chem (-0.74%), Hyundai Motor (-0.98%), and Samsung SDI (-1.06%) also remained in decline. Conversely, Samsung Biologics (1.18%), Naver (0.68%), Celltrion (0.71%), and LG Household & Health Care (0.70%) were on the rise.

The U.S. stock market closed lower amid concerns over premature economic reopening and the possibility of trade friction between the U.S. and China. Sangyoung Seo, a researcher at Kiwoom Securities, explained, “The market declined after news emerged that U.S. senators are pushing legislation to investigate and sanction China related to COVID-19,” adding, “If concerns over trade friction spread, the continued selling pressure from foreigners is likely, which is negative for the Korean stock market.”

At the same time, the KOSDAQ index traded at 680.18, down 0.59% (4.03 points). The KOSDAQ opened at 675.53, down 1.12% (7.68 points) from the previous close. Foreign investors showed strong buying interest, purchasing stocks worth 7.4 billion KRW, while institutions and individuals sold stocks worth 4.1 billion KRW and 1.5 billion KRW respectively.

By sector, the textile and apparel sector rose 2%, while pharmaceuticals (-0.05%) and medical precision instruments (0.15%) saw minimal declines.

Among the top market capitalization stocks, Celltrion Healthcare traded at 90,100 KRW, up 0.33% from the previous session. Celltrion Pharm (3.11%) and Seegene (1.17%) also showed upward trends.