KOSPI Recovers to 1980 Level on Hopes for COVID-19 Treatment Development... KOSDAQ Approaches 700 Level

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI surged significantly on expectations for the development of a treatment for the novel coronavirus disease (COVID-19), closing in on the 2000-point mark. The KOSDAQ index also ended higher, approaching the 700-point level.

On the 19th, the KOSPI closed at 1980.61, up 43.50 points (2.25%) from the previous day. The KOSPI started the day higher and maintained a steady rise of around 2% throughout the session before closing. The increase is attributed to the global resumption of economic activities and progress in vaccine development, which revived investor sentiment. In particular, the news that the U.S. biotech company Moderna succeeded in producing 'antibody formation' results, indicating immunity, in its COVID-19 vaccine clinical trials was a key factor.

Looking at trading trends by participant, institutional and foreign investors led the index rise with net purchases of 842 billion KRW and 335.8 billion KRW, respectively. In contrast, individual investors realized profits with net sales of 1.1862 trillion KRW.

By sector, transportation equipment (6.77%), transportation and warehousing (4.84%), and steel and metals (3.99%) rose, while food and beverages (-2.25%) and paper and wood (-0.62%) declined.

Among the top market capitalization stocks, Hyundai Motor (7.83%) and Hyundai Mobis (7.80%) surged sharply, while Samsung C&T (3.87%), Samsung Electronics (3.07%), and SK Hynix (1.97%) also rose. Conversely, LG Household & Health Care (-1.39%), NAVER (-0.70%), and Kakao (-0.45%) fell.

On the day, 654 stocks rose in the KOSPI market without any hitting the upper limit, 203 stocks fell without any hitting the lower limit, and 41 stocks remained unchanged.

The KOSDAQ index also followed the upward trend. It started higher and maintained a flat range in the morning session but increased its gains in the latter part of the day, closing near the 700-point mark at 696.36, up 5.51 points (0.80%) from the previous trading day.

By trading participant, individual and foreign investors net bought 165.8 billion KRW and 14.7 billion KRW, respectively. Meanwhile, institutional investors net sold 150.7 billion KRW.

By sector, entertainment and culture (5.52%), non-metallic minerals (3.11%), and broadcasting services (2.79%) rose, while internet (-2.25%), software (-1.82%), and medical and precision instruments (-1.48%) declined.

Among the top market capitalization stocks, Alteogen (10.96%) posted a double-digit gain and rose significantly, while Wonik IPS (4.27%), CJ ENM (2.86%), HL Biopharma (2.02%), and Hugel (1.33%) also increased. Conversely, Seegene (-7.92%), Helixmith (-2.03%), and Celltrion Pharm (-0.95%) declined.

On the day, the KOSDAQ market saw 872 stocks rise, including 6 stocks hitting the upper limit, 388 stocks fall, including 1 stock hitting the lower limit, and 76 stocks remain unchanged.