[Asia Economy Reporter Park Jihwan] On the 29th, the KOSPI showed weakness in the early session due to the sharp decline in the US and European stock markets.
According to the Korea Exchange, as of 9:45 a.m., the KOSPI recorded 2304.37, down 1.74% from the previous trading day. The KOSPI opened at 2312.34, down 32.92 points (1.40%) from the previous session, showing a weak trend.
On this day, major indices on the New York Stock Exchange plunged due to fears over the spread of the novel coronavirus (COVID-19) and the strengthening of lockdown measures in various countries. At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 26,519.95, down 943.24 points (3.43%) from the previous session. The Standard & Poor's (S&P) 500 index fell 119.65 points (3.53%) to 3,271.03, and the Nasdaq index, centered on technology stocks, plunged 426.48 points (3.73%) to close at 11,004.87. The Dow and S&P 500 recorded their largest drops since June 11.
Seo Sang-young, a researcher at Kiwoom Securities, said, "The European and US stock markets plunged sharply as fear sentiment increased significantly due to the uncontrollable spread of COVID-19." He added, "The Korean stock market is expected to see a stock-specific market where the range of changes in stocks expands due to earnings announcements and subsequent analysis, similar to the characteristics of the US stock market amid weakened investor sentiment."
In terms of KOSPI market supply and demand, individuals net bought stocks worth 233.9 billion KRW. Foreigners and institutions net sold stocks worth 144.2 billion KRW and 95.1 billion KRW, respectively.
Among the top market capitalization stocks, most declined. Samsung Electronics (-1.53%), SK Hynix (-2.05%), NAVER (-0.34%), and LG Chem (-1.56%) fell. On the other hand, Samsung Biologics (0.78%) and Celltrion (0.21%) rose.
At the same time, the KOSDAQ index fell 1.58% from the previous trading day to 793.75. The index opened at 791.02, down 15.18 points (1.88%) from the previous session, and continued its downward trend.
In terms of supply and demand, individuals defended the index by net buying stocks worth 111.1 billion KRW. Meanwhile, foreigners and institutions net sold stocks worth 83.5 billion KRW and 20.3 billion KRW, respectively.
Among the top 10 market capitalization stocks, all except Seegene (1.43%) and Hugel (1.67%) declined. In particular, Alteogen's (3.59%) decline was notable.
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