KOSPI Falls Over 1.4%... "Impact of COVID-19 Resurgence"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The KOSPI showed weakness amid concerns over the strengthening of lockdown measures worldwide due to the spread of the novel coronavirus infection (COVID-19).

According to the Korea Exchange on the 29th, as of 1:34 PM, the KOSPI recorded 2311.11, down 1.46% from the previous trading day. The KOSPI opened at 2312.34, down 32.92 points (1.40%) from the previous session, and continued its weak trend throughout the day.

This is interpreted as a result of the sharp decline in the New York stock market last night due to fears of the rapid spread of COVID-19 and the strengthening of lockdown measures worldwide. 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, which is tech-heavy, 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.

Signs of a resurgence of COVID-19 are also becoming clear. In the United States, the 7-day average of new confirmed cases surged to around 70,000, and in Europe, countries such as Germany and France announced nationwide lockdown measures.

In the KOSPI market today, individuals were net buyers of 858.5 billion KRW. Foreigners and institutions were net sellers of 453.4 billion KRW and 430.2 billion KRW, respectively.

Among the top 10 companies by market capitalization, all stocks fell except LG Chem (0.62%), Samsung Biologics (5.49%), and Celltrion (2.47%).

At the same time, the KOSDAQ index stood at 801.35, down 0.60% from the previous trading day. The index opened at 791.02, down 15.18 points (1.88%) from the previous session, but the decline narrowed in the afternoon.

By supply and demand, individuals were net buyers of 199.5 billion KRW, while foreigners and institutions were net sellers of 155.6 billion KRW and 23.9 billion KRW, respectively.

Among the top 10 companies by market capitalization, stocks rose except for Alteogen (-2.27%), Kakao Games (-0.67%), and CJ ENM (-1.17%).