KOSDAQ Hits New High, Led by Bio Sector

Early surge breaks 1038.07 high
Pharmaceutical stocks rise 12.38% over one month
Stock price regains upward momentum after pause

[Asia Economy Reporter Song Hwajeong] Pharmaceutical and bio stocks, which had been sluggish, have recently led the rise in the KOSDAQ, increasing expectations for a stock price recovery. The expansion of vaccination and the spread of the COVID-19 Delta variant are expected to act as variables for pharmaceutical and bio stocks.

As of 9:25 a.m. on the 2nd, the KOSDAQ recorded 1036.01, up 0.37 points (0.04%) from the previous day. It rose to 1038.07 early in the session, setting a new intraday high. This strength in the KOSDAQ was led by pharmaceutical stocks. Looking at the monthly fluctuation rates by KOSDAQ sector indices, pharmaceuticals rose 12.38%, showing the largest increase. This was followed by software (10.16%) and general electric and electronics (10.02%), both recording double-digit returns. During the same period, the KOSDAQ rose 5.49%.

Among the top market cap stocks in the KOSDAQ, pharmaceutical and bio stocks such as Celltrion Pharm recorded a 16.8% increase over the past month. Seegene rose 25.18%, and Alteogen increased 24.75% respectively.

Pharmaceutical and bio stocks, which had shown strong upward momentum after COVID-19, showed sluggish stock price trends this year as the pandemic entered a calming phase and vaccination expanded. The KOSDAQ rose 7.58% in the first half of this year, but pharmaceuticals fell 4.88%, significantly underperforming the market return. The KOSDAQ 150 Healthcare index dropped by as much as 19.92%. Researcher Lee Myungseon of Shin Young Securities said, "With the success of vaccine development and increased vaccination rates, the weakened growth momentum of diagnostic companies, the absence of therapeutic development achievements except for Celltrion, and adverse factors such as clinical failures have caused the pharmaceutical and bio sector to undergo adjustments since the beginning of the year," adding, "With main contracts expected in the second half and the recent spread of variant viruses, vaccine-related stocks and diagnostic stocks are gaining attention, and fluctuations in pharmaceutical and bio stocks will continue until the end of COVID-19."

Although showing recent strength, the adjustment of pharmaceutical and bio stocks is not expected to end easily. Researcher Ha Taegi of Sangsangin Securities said, "Pharmaceutical and bio stocks are expected to hit a bottom in the third quarter and recover in the fourth quarter," adding, "From the fourth quarter, expectations for clinical progress and new drug development next year will be reflected, leading to a meaningful stock price rebound."

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