Fear for the resurgence of the globally spreading COVID-19 pandemic puts Seoul stocks in a risky situation. Under this grave situation, bio and related shares are instead rising. The Korean won has also been reportedly exceeded the US dollar.
COVID-19 pandemic and how it affects South Korea’s stocks
Despite having passed the emergency state of coronavirus pandemic, the country is now under alert again for a resurgence in COVID-19 positive cases. Last Tuesday, South Korea reportedly experienced a drastic surge of 246 new cases. An alarming number after previously gaining 197 and 297 on Monday and Sunday respectively.
The Korea Herald reports this situation puts the Korea Composite Stock Price Index (KOSPI), which has already been under valuation pressure, under more crisis. South Korean shares recorded a decline by more than 2% last Tuesday. With a 59.25 decline, around 2.46% down at 2,348.24, this record is by far the steepest fall after June 15. The Korea Herald also disclosed foreigners took over net 71 billion won, while retail investors bought a net 527 billion won. Institutions also reportedly offloaded a net 478 billion won. With how the resurgence of COVID-19 pandemic in Seoul is affecting the stocks, it surely isn’t something that needs to be ignored.
Recent updates on South Korea’s stocks
Yuanta Securities Korea analyst, Cho Byung-hyun revealed that the coronavirus concerns have brought a relatively strong gain in bio and related shares. The Korea Herald further disclosed that the top pharmaceutical company Samsung Biologics, inclined by 0.25% to 802,000 won. Meanwhile, Celltrion recorded a 0.16% loss to 304,000 won. LG Chem has also declined for 1.43% to 690,000 won.
Electronic companies seem to be experiencing growth. The Market bellwether Samsung Electronics gained 0.69% to 58,400 won. Korea’s local internet portal giant, Naver, has also recorded a 0.82% growth to 307,500 won. Kakao, the most sought-after messenger app in Korea also jumped 4.28% to 378,000 won. No.2 chipmaker SK Hynix, on the other hand, dipped 2.62% to 78,100 won.
The Korea Herald also noted the local currency closed at 1,183.70 won against the US dollar. A slight 0.90 won increase from the previous season’s closing result.
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