Pfizer Shakes Domestic Stock Market... Celltrion Trio Underperforms

KOSPI Pharmaceutical Sector Index Down 6.28%... KOSDAQ Pharmaceutical Sector Index Down 4.43%

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] News of Pfizer's oral COVID-19 treatment development shook the domestic stock market. While domestic medical-related stocks, including the Celltrion trio (Celltrion, Celltrion Healthcare, Celltrion Pharm), showed sluggish performance, the KOSPI index fell by over 1%.

As of 10:40 a.m. on the 8th, the KOSPI recorded 2,935.92, down 1.12% (33.35 points) from the previous day. It even dropped to 2,930.90 at 10 a.m. that day.

Following the announcement that Pfizer's oral COVID-19 treatment, Paxlovid, showed high therapeutic efficacy, domestic and international medical-related stocks were significantly shaken. On the 5th (local time), Pfizer revealed that clinical trials of its antiviral pill for COVID-19 treatment reduced the probability of hospitalization and death by up to 89%.

On this news, Pfizer's stock surged 10.86%, but Merck, another developer of oral COVID-19 treatments, fell 9.86%, showing sluggish performance. This is because Pfizer's product is widely expected to dominate the COVID-19 treatment market.

[Image source=AP Yonhap News]

This also led to sluggishness in domestic medical-related stocks such as Celltrion and Samsung Biologics. Except for Kia, all of the top 10 stocks by market capitalization declined. Celltrion's drop was the largest at 6.46%. Following were Samsung Biologics (-4.98%), Kakao (-2.72%), SK Hynix (-2.34%), LG Chem (-1.91%), Samsung SDI (-1.46%), NAVER (-1.10%), Hyundai Motor (-0.47%), and Samsung Electronics (-0.43%). Kia rose 0.68%.

Foreign and institutional investors showed strong selling pressure. Foreigners and institutions sold a net 134.4 billion KRW and 295.8 billion KRW, respectively. Individuals bought a net 417.3 billion KRW.

Most sectors declined. Pharmaceuticals had the largest drop at 6.28%, followed by medical precision (-3.90%), banks (-3.84%), financials (-1.86%), and steel & metals (-1.63%). Electricity & gas (1.73%), textiles & apparel (1.72%), transportation & warehousing (0.70%), machinery (0.44%), and construction (0.39%) rose.

The KOSDAQ index recorded 990.32, down 1.10% (11.03 points) from the previous day. It also fell to 988.36 at 10:27 a.m. that day.

Foreign and institutional selling pressure led to the index decline. Foreigners and institutions sold a net 61.1 billion KRW and 23.8 billion KRW, respectively. Individuals bought a net 95.3 billion KRW.

Almost all sectors declined. Pharmaceuticals had the largest drop at 4.43%, followed by distribution (-3.86%), transportation equipment & parts (-2.90%), other services (-2.53%), and chemicals (-2.06%). Digital content (2.69%), broadcasting services (1.58%), IT software & services (1.24%), construction (1.17%), and finance (1.01%) rose.

The top 10 stocks by market capitalization showed mixed results. HL Biotech had the largest drop at 8.13%, followed by Celltrion Pharm (-7.59%), Celltrion Healthcare (-7.53%), SK Materials (-1.81%), and Kakao Games (-0.51%). WEMADE (8.30%), Pearl Abyss (7.71%), CJ ENM (3.16%), EcoPro BM (0.60%), and L&F (0.38%) rose.