First Half of the Year: Preferred Stocks and Bio Stocks Soar High

KOSDAQ Humasis Up 756% · KOSPI Shinpung Pharmaceutical Preferred Shares Up 754%, Highest Increase

[Asia Economy Reporter Song Hwajeong] Amid the turmoil in the domestic stock market in the first half of this year due to the novel coronavirus infection (COVID-19), the stocks that rose the most were preferred stocks and pharmaceutical and bio stocks.

According to the Korea Exchange on the 23rd, the stock price of Humasis, a KOSDAQ-listed company, rose 755.6% up to the previous day this year, marking the highest increase in the domestic stock market. In the KOSPI market, Shinpoong Pharmaceutical Preferred Stock rose 754.24%, recording the largest increase. Preferred stocks showed a remarkable rise in the KOSPI market, while pharmaceutical and bio stocks had a large increase in the KOSDAQ market.

Among the top 10 stocks with the highest growth rate in the KOSPI market this year were Shinpoong Pharmaceutical Preferred Stock, Samsung Heavy Industries Preferred Stock (615.76%), Ilyang Pharmaceutical Preferred Stock (478.35%), Shinpoong Pharmaceutical (333.29%), Genexine (325.31%), Deokseong Preferred Stock (267.5%), SK Securities Preferred Stock (250.8%), Doosan Fuel Cell (187.63%), Ilyang Pharmaceutical (186.49%), and Doosan Solus 1 Preferred Stock (179.66%). Most of these were preferred stocks and pharmaceutical and bio stocks, with Doosan Fuel Cell being the only non-preferred stock in the top 10. Doosan Fuel Cell's stock price surged significantly due to expectations for fuel cell growth and the possibility of asset sales for the management normalization of Doosan Heavy Industries.

Preferred stocks, which recently showed signs of overheating, are now showing a slowdown in their upward trend. Samsung Heavy Industries Preferred Stock, which set the longest record for consecutive upper limit prices with 10 days in a row, was designated as a risky investment stock and trading was suspended on the 18th. After trading resumed, it recorded a decline of over 20% for two consecutive days. Shinpoong Pharmaceutical Preferred Stock, the top gainer in the KOSPI, touched 60,000 KRW intraday on the 10th, hitting a 52-week high, but then weakened and fell below the 50,000 KRW level.

In the KOSDAQ market, pharmaceutical and bio stocks, which attracted increased investor interest after the COVID-19 outbreak, showed overwhelming strength. Among the top 10 stocks by growth rate were Humasis, Mecaics (579.12%), Jinmatrix (505.26%), Alteogen (428.19%), Sugentech (377.06%), L&C Bio (297.66%), Labgenomics (296.08%), FST (287.43%), KPS (276.04%), and Seegene (251.06%). Only FST and KPS were non-bio stocks. Among these, FST, a semiconductor-related stock, rose due to the biometric recognition theme and increased investment by Samsung Electronics. KPS, an organic light-emitting diode (OLED) related equipment company, saw its stock price rise due to its entry into the bio business. The strength of bio stocks was largely influenced by COVID-19. Diagnostic companies' stock prices rose sharply, followed by expectations for vaccine development leading to stock price increases. Humasis, which recorded the highest growth rate, hit the upper limit price for five consecutive trading days recently on news of developing a COVID-19 diagnostic kit in collaboration with Celltrion.

The strong rise of pharmaceutical and bio stocks, which showed strong momentum in the stock market shaken by COVID-19, is expected to continue in the second half of the year. Hong Gahye, a researcher at Daishin Securities, said, "Momentum for COVID-19 diagnostic kits, vaccines, and therapeutics was highlighted, and government support and policy changes such as short-selling bans and increased liquidity focused attention on pharmaceutical and bio stocks in the first half of the year." She added, "Although the speed of stock price increases may slow compared to the first half due to valuation burdens, expectations will continue in the second half with confirmation of COVID-19 vaccine and therapeutic development results."

This content was produced with the assistance of AI translation services.