KOSPI Closes Below 2160... "Concerns Over COVID-19 Resurgence"

[Image source=Yonhap News]

[Asia Economy Reporter Park Ji-hwan] The KOSPI closed lower due to simultaneous selling by foreign and institutional investors. Concerns over the resurgence of COVID-19 and poor corporate earnings are believed to have dragged the index down.

On the 7th, the KOSPI closed at 2,164.17, down 23.76 points (1.09%) from the previous day. The market opened higher, supported by strong U.S. stock markets and improved earnings from Samsung Electronics. The index rose 14.11 points (0.64%) to 2,202.04 during the session, surpassing the 2,200 mark for the first time in about a month, but soon reversed to a decline. However, concerns about the second half earnings increased as it was highlighted that some of Samsung Electronics' earnings included one-time costs, leading to selling pressure.

Seo Sang-young, a researcher at Kiwoom Securities, explained, "The large-scale futures selling by foreigners and negative factors such as news that the number of new COVID-19 cases in the U.S. reached 55,000 seem to have caused the market to turn downward."

Looking at trading trends by participant, individual investors bought stocks worth 853.7 billion KRW. In contrast, foreigners and institutions sold stocks worth 385.7 billion KRW and 461.7 billion KRW, respectively.

By sector, food and beverages (0.66%) and pharmaceuticals (0.12%) rose, while electrical and electronics (-2.42%) and transportation equipment (-1.77%) declined.

Among the top market capitalization stocks, Samsung Electronics (-2.91%), SK Hynix (-1.40%), Samsung Biologics (-0.40%), and Naver (-0.71%) fell, whereas Celltrion (0.98%), LG Chem (1.38%), Kakao (3.33%), and Samsung SDI (0.77%) rose.

The KOSDAQ index also fell slightly. It closed at 759.16, down 0.74 points (0.10%) from the previous trading day. The index started at 763.40, up 3.50 points (0.46%) from the previous close, but turned bearish.

By trading participant, individual investors defended the index decline by net buying 263.5 billion KRW. Meanwhile, foreigners and institutional investors sold 223.8 billion KRW and 43.5 billion KRW, respectively.

By sector, IT comprehensive (-0.11%), entertainment and culture (-0.45%), and construction (-1.28%) declined, while IT software (0.93%) rose.

Among the top market capitalization stocks, Alteogen (2.55%), Seegene (1.77%), and Pearl Abyss (1.48%) rose. In contrast, Celltrion Healthcare (-1.67%) and HLB (-1.44%) fell.