KOSPI Fluctuates Around 2340 Level... KOSDAQ Falls by Over 1%

[Asia Economy Reporter Oh Ju-yeon] The domestic stock market continued its weak trend on the afternoon of the 20th. The KOSPI fluctuated around the 2340 level, while the KOSDAQ index fell 1%, widening its losses.

As of 2:02 PM on the day, the KOSPI recorded 2338.40, down 0.30% from the previous trading day. It briefly rose to 2358.17 during the morning session but failed to maintain upward momentum and reversed to fall as low as 2322.06.

By investor type, individuals sold stocks worth 172 billion KRW, foreigners sold 7.3 billion KRW, while institutions net bought stocks worth 181.9 billion KRW.

Among the top market capitalization stocks, Samsung Electronics (1.17%), NAVER (0.52%), and Samsung SDI (2.66%) rose, while SK Hynix (-1.87%), Samsung Biologics (-2.33%), and Hyundai Motor (-1.19%) declined.

The KOSDAQ index fell 1.38% from the previous trading day to 810.95. During the session, it dropped to 803.24, barely maintaining the 800 level.

Individuals and foreigners bought stocks worth 68 billion KRW and 35.5 billion KRW respectively, while institutions sold stocks worth 91.4 billion KRW, pulling the index down.

Among the top market capitalization stocks, except for HL Biopharma (1.79%), all of the top 10 stocks were in decline.

Seo Sang-young, a researcher at Kiwoom Securities, analyzed, "Despite the weakness in the US stock market, the Korean stock market rose at times supported by institutional demand based on large-scale net buying of futures by foreigners. However, as the scale of foreign futures net buying shrank and uncertainties regarding additional stimulus measures persisted amid the ongoing spread of the novel coronavirus (COVID-19) in the US, the market turned downward."

He explained that the recent poor performance of some newly listed companies fueled the weakness in the bio sector, which had concerns about high valuations, thereby expanding the decline in the KOSDAQ.

Researcher Seo diagnosed, "The market continues to weaken due to a lack of clear upward momentum, influenced by profit-taking and uncertainties surrounding the presidential election."