[Asia Economy Reporter Lee Seon-ae] On the 29th, the KOSPI index barely held the 2900 level and started lower amid fears of the Omicron variant of the COVID-19 virus.
On that day, the KOSPI opened at 2906.15, down 30.29 points (1.03%↓). The KOSDAQ also started the session at 986.64, down 19.25 points (1.91%↓). In the early session, the KOSPI briefly fell below the 2900 level but managed to hold it.
Amid fears of the spread of Omicron, only individual investors are selling. Individuals recorded net sales of approximately 483.7 billion KRW and 122.5 billion KRW in the KOSPI and KOSDAQ markets, respectively. In contrast, foreigners and institutions are net buyers. Foreigners are net buyers of about 83.1 billion KRW and 87.4 billion KRW in the two markets, respectively. Institutions are net buyers of about 448.2 billion KRW and 33.4 billion KRW in the two markets, respectively.
By sector in the KOSPI, most sectors are declining, including Non-metallic Minerals (-2.47%), Construction (-2.32%), and Transportation and Warehousing (-2.22%), while some sectors such as Pharmaceuticals (+2.16%) are showing strength. In the KOSDAQ sectors, most sectors are also declining, including Non-metallic Minerals (-3.72%), Paper and Wood (-3.48%), and Software (-3.45%), while some sectors such as Distribution (+0.23%) and Pharmaceuticals (+0.03%) are showing strength.
Park Sang-hyun, a researcher at Hi Investment & Securities, said, "The emergence of the Omicron variant will act as a black hole for all materials," adding, "This week, the November China Manufacturing PMI, the US ISM Manufacturing Index, and employment data are scheduled to be released, but the trend of the Omicron variant variable is expected to be at the center of all issues."
Seo Sang-young, a researcher at Mirae Asset Securities, said, "The rapid spread of the Omicron variant and news that a secondary infection occurred in the front cabin of an Omicron patient confirmed in Hong Kong raises concerns as it suggests the possibility of airborne transmission."
The issue is whether Omicron will spread further. Researcher Seo said, "We need to continuously monitor whether it expands to Southeast Asia and China, as this could affect supply chain issues," adding, "In the worst case, if this spreads, panic selling could increase."
However, since investors have developed resistance to the negative impact of variant viruses continuing since last year, there is also a view that the decline will be limited. Lee Jae-man, a researcher at Hana Financial Investment, said, "The negative impact of variant viruses on the stock market is weakening due to a learning effect," and forecasted, "Considering a maximum decline of up to 6%, including on the 26th, the expected lower bound of the KOSPI in December is around 2810 points." Researcher Seo also predicted, "Since factory shutdown measures have not yet been implemented globally, volatility expansion is expected to be limited."
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