Has the Fear of 'Omicron' Lockdown Subsided? Strong Early Gains in KOSPI and KOSDAQ Markets

On the 30th, amid ongoing concerns about the COVID-19 variant Omicron, overseas arrivals are receiving transportation guidance at Terminal 1 of Incheon International Airport. Photo by Moon Honam munonam@

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices are showing strong gains in early trading.

At 9:10 a.m. on the 30th, the KOSPI stood at 2930.64, up 0.73% (21.32 points) from the previous trading day. The KOSPI opened at 2932.71, up 0.80% (23.39 points) from the previous day, and showed gains exceeding 1% during the session.

It is analyzed that individual investors, who had been net sellers the previous day, are leading the index rebound by buying a large volume of stocks. Individuals purchased stocks worth 122.5 billion KRW alone, and foreigners also net bought stocks worth 25.5 billion KRW. Institutions, on the other hand, sold stocks worth 149.6 billion KRW alone.

With the Philadelphia Semiconductor Index hitting an all-time high, Samsung Electronics and SK Hynix showed gains of over 1% in early trading. Samsung Electronics traded at 73,600 KRW, up 1.8%, and SK Hynix rose 1.29%. Other large-cap stocks such as NAVER (0.91%), Samsung Biologics (0.57%), Kakao (0.81%), LG Chem (0.14%), and Samsung SDI (0.85%) also showed upward trends.

The domestic stock market is analyzed to be rising influenced by the gains in the U.S. stock market. The U.S. stock market had sharply declined last Friday reflecting concerns over the Omicron variant, but rebounded after President Biden stated that lockdowns were unnecessary. Although the World Health Organization (WHO) issued warnings about the risks of Omicron, the South African doctor in charge of the initial outbreak eased concerns by stating that Omicron caused only "extremely mild symptoms," which the financial market apparently interpreted as positive news.

Han Ji-young, a researcher at Kiwoom Securities, said, “The domestic stock market is expected to show strength mainly in sectors that experienced large declines the previous day, supported by a recovery in global risk appetite. The Philadelphia Semiconductor Index hitting new highs again and the rebound of growth stocks in the U.S. market will contribute to improving investor sentiment.”

At the same time, the KOSDAQ index stood at 1001.88, up 0.98% (9.54 points) from the previous trading day. The KOSDAQ opened at 103.04, up 1.08% (10.70 points) from the previous day, and also showed gains exceeding 1%. Regarding investor trends, individuals and institutions bought stocks worth 58.1 billion KRW and 7.5 billion KRW respectively, while foreigners sold stocks worth 68.1 billion KRW.

Among the large-cap stocks, Celltrion Healthcare rose 1.08%, and EcoPro BM (2.75%), Pearl Abyss (3.08%), Pearl Abyss (2.83%), L&F (2.83%), Kakao Games (1.17%), Wemade (2.85%), Celltrion Pharm (1.39%), and HLB (0.4%) also increased. In contrast, Seegene fell 6% alone as fears over the Omicron spread eased.