Energetic Games VS Frail Bio

Game ETF Returns Over 20% ↑
Many Bio ETFs Positioned at the Bottom
KOSDAQ Market Cap Competition Sees Mixed Outcomes

[Asia Economy Reporter Song Hwajeong] The divergent trends between gaming stocks and biotech stocks are also reflected in the returns of exchange-traded funds (ETFs). While gaming-related ETFs showed a marked strong performance, biotech ETFs posted weak returns.

According to the Korea Exchange on the 3rd, the ETF with the highest return among all ETFs over the past month was TIGER K-Game. TIGER K-Game rose by 28.81% in the last month. It was followed by KODEX Game Industry (26.85%) and KBSTAR Game Theme (26.38%). All ETFs that rose more than 20% were gaming ETFs.

On the other hand, biotech ETFs dominated the lower end of returns. TIGER KRX BioK-New Deal fell 12.11%, showing the poorest performance, while KODEX Healthcare (-9.81%), TIGER Healthcare (-9.7%), ARIRANG KRX300 Healthcare (-9.61%), and KBSTAR Healthcare (-9.16%) also underperformed.

The rising gaming stocks and falling biotech stocks trend is also evident in the KOSDAQ market capitalization rankings. Pearl Abyss rose to 3rd place in market cap, with Kakao Games and Wemade ranking 5th and 6th respectively. Pearl Abyss and Kakao Games each climbed two spots compared to early last month, while Wemade’s ranking surged from 40th at the beginning of last month. Conversely, biotech stocks saw HL Biotech fall from 4th to 7th place, and Celltrion Pharm also dropped two spots to 8th. Seegene, which was 10th, fell out of the top 10.

Gaming stocks, which underwent corrections in August and September, have recently rebounded thanks to solid earnings and the success of new releases. Additionally, issues related to blockchain and the metaverse have contributed to a significant rise in stock prices. In contrast, biotech stocks have continued to weaken due to news about oral treatment development and poor earnings. Lee Dong-geon, a researcher at Shinhan Financial Investment, analyzed, "Negative news about clinical pipelines, which had attracted high market interest, has been announced one after another, causing the stocks of new drug developers that had risen together since the full spread of COVID-19 last year to underperform. The Celltrion Group’s ongoing poor earnings this year have resulted in a first half that contrasts with last year’s favorable trend. The stocks of COVID-19 vaccine and related contract manufacturing organizations (CMO), which showed a favorable trend until early in the second half, also sharply reversed after Merck’s announcement of Phase 3 clinical trial results for oral treatments in October amid a significant increase in vaccination rates."

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