As the Capital Gains Tax Issue Ends, the 'Jen' Brothers Soar Again

KOSDAQ Bio Sector Rises
Seegene and Alteogen Surge Over 10%
Retail Investors Who Sold Due to Capital Gains Tax Burden Buy Back Aggressively

[Asia Economy Reporter Oh Juyun] On the 28th, KOSDAQ bio stocks, which had fallen due to the burden of major shareholder capital gains tax, soared together the next day. This year, especially with increased individual participation in the stock market, it is regarded as a clear example showing how individual supply and demand changes depending on trading stimulus factors.

According to the Korea Exchange on the 30th, among the top 5 KOSDAQ stocks by market capitalization, all except Celltrion Pharm closed higher compared to the previous day. Among them, Celltrion Healthcare rose 6.67% from the previous trading day, while Seegene and Alteogen surged more than 10% each.

On the ex-dividend date, the market capitalization decreases by the amount of the cash dividend, and the index also falls, so the KOSDAQ index was initially expected to drop by 0.48% compared to the previous day. However, individuals rather opened their wallets and bought up 272.4 billion KRW worth of stocks in the KOSDAQ market alone. This is interpreted as individuals picking up what they had sold off worth 900 billion KRW the previous day due to the burden of major shareholder capital gains tax. Among these, the stocks with a high individual share and the largest index increase on that day were Seegene and Alteogen.

This year, Seegene rose rapidly as a diagnostic kit maker for the novel coronavirus infection (COVID-19), becoming the most notable stock in the KOSDAQ market. On January 2, Seegene’s stock price was 30,950 KRW, but as the demand for diagnostic kits surged with the spread of COVID-19, it soared about fourfold to close at 121,000 KRW on March 30. Benefiting greatly from COVID-19, the stock price seemed to stabilize as the pandemic eased, but in the second quarter, during the first earnings season after COVID-19, it proved its strengthened fundamentals and surged again. On August 10, the stock price rose intraday to 322,000 KRW, marking a tenfold vertical rise in eight months. In a market with more active participation than ever, individuals flocked to Seegene like a comet.

Looking at Seegene’s investment proportion this year, individuals account for 89%. Although the recent stock price has fallen below 200,000 KRW, individuals maintained this ratio by picking up the shares they had reduced due to the major shareholder burden. The securities industry expects Seegene to record sales of over 1 trillion KRW and operating profit of around 600 billion KRW this year. According to Seegene’s recent announcement, its annual sales have already exceeded 1 trillion KRW this year, nearly ten times higher than the previous year. Among domestic listed companies, Seegene also shows the steepest increase in operating profit compared to the same period last year. According to FnGuide, the consensus operating profit forecast for Seegene in Q4 this year by three or more securities firms is 241 billion KRW, expected to increase by 4599.9% from 5.1 billion KRW in Q4 last year.

Alteogen also had an individual investment proportion of 80.2% this year. Individuals who sold 66.5 billion KRW worth of shares on the 28th due to the major shareholder burden immediately bought back 34 billion KRW worth on the 29th. Alteogen’s stock price, which closed down 3% on the 28th, closed up 16.58% on the 29th.

The strong performance of these sectors is expected to continue into early next year. Over the past 10 years, small-cap stocks in the KOSDAQ have performed well every January, and among sectors, healthcare stocks have shown strength.

Lee Jungbin, a researcher at IBK Investment & Securities, analyzed, "As we move into January every year, supply and demand shifts to healthcare," adding, "Regardless of overall market rises or falls, healthcare returns have been impressive." He further stated, "Among the top 5 KOSDAQ150 stocks by market capitalization?Celltrion Healthcare, Celltrion Pharm, HL Biopharma, Seegene, and Alteogen?are expected to be promising."

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