Over the past few weeks, COVID19 infection cases in Korea blew up from only under 50 to more than one thousand. The most recent update in (2/26) is that there’s 1146 cases in the country. With the massive outbreak, many aspects of business in South Korea received the impact, including the stock market.
Reportedly, the Korean stock market plunged more than 80 points in just one day, and the KOSPI index also collapsed in the 2080 range.
On Monday, the KOSPI index started 2.26 percent lower than the previous trading day. At 2,114.04, and fell 3.87 percent to close at 2,079.04.
This marked the largest fall in more than a year and four months since Oct. 11, 2018, when the KOSPI reached 98.94 points and 4.44 percent.
As a result, the market capitalization of the KOSPI fell by 56.2 trillion won to 1,400.5 trillion won from 1,456.7 trillion won on Monday.
A series of death and surge number of confirmed COVID19 cases attribute the Korean stock market
The financial market believes that the volatility of the COVID19 could increase further. Given that it is rapidly spreading to major Asian regions such as Singapore and Japan.
In addition, foreigners sold KRW 786.8 billion worth of stocks in the securities market. Marking the largest net selling in three months since Nov. 26 last year when the figure stood at KRW 857.6 billion. On the other hand, individuals and institutions bought KRW 67.7 billion and KRW 192.8 billion, respectively.
Among the top market cap stocks, Samsung Electronics (-4.05 percent) and SK Hynix (-3.40 percent) plunged, while Samsung BioLogics (-5.24 percent), Naver (-2.90 percent), LG Chem (-2.95 percent), and Hyundai Motor (-4.30 percent) also fell.
By industry, electricity and electronics (-3.95 percent), construction (-4.485), machinery (-4.50 percent), and textiles and clothing (-4.39 percent) were all weak.
The number of stocks dropped to 847 and only 55 rose. Ten stocks closed flat.
On the same day, the stock market traded about 928 million shares and 9.19 trillion won in transactions. While program selling and non-profit trading were both selling advantages. Resulting in net selling of 272.9 billion won overall.
On the other hand, individuals and institutions led the stock market decline by net selling 30.3 billion won and 2.3 billion won, respectively, while foreigners bought 41.9 billion won net.
The won closed at 1,220.20 won against the U.S. dollar, up 11.0 won from the previous trading day.
