Cold Wind Blows in the Stock Market... 16% of Listed Companies Hit 'All-Time Low'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] A cool autumn breeze is blowing through the domestic stock market. This is due to a surge in stocks hitting their all-time lows since listing.

According to the Korea Exchange on the 11th, as of the market close on the 7th, a total of 442 stocks in the domestic market?including KOSPI, KOSDAQ, and KONEX?have recorded their all-time lowest closing prices since their listing this year. Considering that there are 2,656 listed companies as of the 7th, this means that 16.64% of stocks have broken their all-time low price records since listing.

Looking at the stocks that have set new all-time lows by market, 77 were on KOSPI and 327 on KOSDAQ. The proportion by market shows that 8.17% of KOSPI-listed companies hit new all-time lows, whereas on KOSDAQ, the figure was as high as 20.55%.

The dates when these stocks hit their lowest prices were concentrated at the end of September and early October. Among the 442 stocks that set new all-time lows this year, 311 stocks?accounting for 70%?recorded their lowest prices during September and October. During this period, the domestic stock market experienced continuous declines due to a strong dollar, recession concerns, and inflation fears, with KOSPI hitting yearly lows.

Examining stocks that have fallen to their lowest levels since listing, Kakao affiliates stand out. Kakao Bank, Kakao Pay, Kakao Games, and other Kakao subsidiaries all recorded their all-time lows on the 7th. Recently, Kakao’s subsidiaries have shown weak stock performance amid negative outlooks from the securities industry. Kakao Games experienced a decline due to controversies over poor management of its new title “Uma Musume” and the split listing controversy involving its subsidiary Lionheart Studio.

The full-scale onset of the endemic phase appears to have impacted biotech companies. SK Bioscience, which produces Korea’s first COVID-19 vaccine, and SD Biosensor, a diagnostic kit company, both recorded all-time lows.

Additionally, gaming stocks such as Krafton and Netmarble, as well as entertainment stocks like HYBE and DearU, also hit new lows. Krafton was affected by downward revisions in earnings estimates due to the poor performance of its new mobile title, while HYBE faced negative factors including the suspension of activities by its affiliated group BTS.

However, some analysts suggest that since the domestic stock market has already fallen significantly, it could rebound even with minor positive news. Lee Kyung-min, a researcher at Daishin Securities, advised, “Given the recent situation, there remains room for the market to react sensitively even to small positive factors. By thoroughly managing risks and increasing the proportion of dividend stocks and defensive stocks (such as telecommunications and food & beverage) in portfolios, there is still room for short-term trading strategies.”

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