[BBIG Earnings] Bio Slips... Game Rises

KRX Game K-New Deal Index Tops BBIG in Annual Gains
Metaverse, NFT Boosts Continue Positive Trend
Bio Sector 'Last Place' with Around 30% Annual Decline
Secondary Battery and Internet Show Steady Growth

[Asia Economy Reporter Minwoo Lee] The 'BBIG' sectors?secondary batteries, bio, internet, and gaming?that emerged as the leading industries in the domestic stock market after COVID-19 last year have experienced mixed fortunes this year. While the bio sector significantly underperformed the market return, the gaming sector, which showed the slowest growth among BBIG last year, surged to become the top performer in terms of returns this year.

According to the Korea Exchange on the 29th, the KRX BBIG K-New Deal Index closed down 6.4% this year through the previous day. This is a relatively poor performance compared to the KOSPI's 2.6% increase over the same period. This contrasts sharply with last year's 82.1% rise. Launched on September 7 last year, the index consists of 12 stocks, with the top three by market capitalization in each BBIG sector, which are recognized as future growth-driven industries.

Although the overall BBIG index declined, there were clear winners and losers within the sectors. The gaming and bio sectors are representative examples. The KRX Gaming K-New Deal Index rose 13.7% this year through the previous day, recording the highest return among BBIG sector indices. The upward trend accelerated especially toward the end of the year. This is attributed to growing expectations for the gaming sector's potential in metaverse (expanded virtual worlds) and blockchain-based non-fungible tokens (NFTs). While traditional gaming leaders like NCSoft and new leaders like Krafton showed some weakness, the strong performance of Pearl Abyss, Kakao Games, and Devsisters drove the index's rise. In the KOSDAQ market, Pearl Abyss surged over 160% this year alone, climbing to third place in market capitalization. Kakao Games, ranked fifth in KOSDAQ market cap, also rose about 100% this year. Devsisters skyrocketed nearly 580%.

On the other hand, the bio sector showed marked weakness. Among the five representative BBIG indices, only the 'KRX Bio K-New Deal Index' fell 29.5% this year, significantly underperforming the KOSPI during the same period. Last year, expectations for treatments and vaccines surged amid the spread of COVID-19, but investor sentiment cooled this year due to the prolonged pandemic. Particularly notable was the poor performance of three top market cap stocks in KOSPI and KOSDAQ: Celltrion, Celltrion Healthcare, and Celltrion Pharm. Through the previous day this year, their closing prices dropped by 37.8%, 41.5%, and 35.8%, respectively.

The secondary battery sector was relatively quiet. The 'KRX Secondary Battery K-New Deal Index' rose only 7.9% this year through the previous day. This contrasts with last year's nearly twofold surge, which was the highest among BBIG sectors. The ongoing supply shortage of automotive semiconductors has caused disruptions in electric vehicle production, which is believed to have dampened the upward momentum in the secondary battery sector. Additionally, the upcoming listing of LG Energy Solution, a subsidiary spun off from LG Chem's battery business, scheduled for next month, led to the disappearance of the 'leader premium,' causing a sharp drop in LG Chem's stock price. In fact, LG Chem's stock, which hit an all-time high of 1,050,000 KRW at the beginning of the year, fell to a 52-week low of 616,000 KRW during trading on the 27th.

The internet sector maintained its upward trend but lost the unstoppable momentum seen last year. The 'KRX Internet K-New Deal Index' rose 7.0%, ranking third among BBIG sectors. This is attributed to a slowdown in the growth of key stocks such as Kakao and NAVER, which had surged sharply last year due to the activation of non-face-to-face (untact) consumption driven by COVID-19.

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