Look-alike Rookie Stocks EcoproMighty and LS Murt, Unstoppable Momentum

Entered the Stock Market Last Year at One-Month Intervals
Common Traits of Secondary Battery-Related Group Stocks
Stock Prices Soared Together After Listing

EcoProMPT and LS Materials, rookie stocks that entered the stock market at the end of last year, are showing similar trajectories. As new faces in the secondary battery sector attracting market attention, both stocks have seen their prices surge significantly after listing and have even been designated as investment warning stocks, showing many similarities.

According to the Korea Exchange on the 8th, EcoProMPT, which debuted on the KOSPI market on November 17 last year, saw its stock price soar 367% compared to the initial price after listing. The stock price, which was in the 50,000 KRW range on the listing day, has now surpassed 200,000 KRW. With this sharp rise, EcoProMPT, which was ranked below the 50th in market capitalization, jumped up to 20th place. LS Materials, which was listed on the KOSDAQ market on December 12 last year, recorded a "ttattasang" (a 4x increase from the IPO price) on the first day of listing and continued its strong performance, with the stock price rising 149.25% compared to the initial price. Its market capitalization ranking rose to 10th place. LS Materials experienced only four trading days of price decline since listing, with all other days showing increases, maintaining a rapid upward trend.

Due to the sharp rise in stock prices, both stocks were designated as investment warning stocks. On the 5th, EcoProMPT was removed from the investment warning list and became an investment caution stock.

The price increases of both stocks were led by foreign investors. Since the beginning of this year, foreign investors have net purchased 39.7 billion KRW of EcoProMPT and 16.5 billion KRW of LS Materials. The foreign ownership of EcoProMPT expanded from 0.76% on the first day of listing to 1.18%. Similarly, LS Materials' foreign ownership increased from 0.27% on the first day to 0.92%.

Both stocks share many commonalities beyond having "Materials" in their names and being listed around the same time. They are related to the secondary battery sector, and group stocks in this sector have attracted market attention for some time.

The strong performance of both stocks appears to be influenced by their status as secondary battery stocks. After existing secondary battery stocks surged and then underwent corrections amid a lack of new positive factors, the emergence of new players has drawn market attention. Moreover, both stocks belong to the EcoPro and LS groups, which have previously demonstrated rapid growth in the secondary battery sector, further impacting their stock price increases.

In the case of EcoProMPT, expectations for inclusion in the Morgan Stanley Capital International (MSCI) Korea Index scheduled for February also seem to be playing a role. Myung Yookan, a researcher at Mirae Asset Securities, said, "The key criteria for deciding new MSCI inclusions are market capitalization and free float ratio. The February regular review will be based on market capitalization on a random date between the 18th and 31st of this month," adding, "As of the closing price on the 3rd, EcoProMPT's inclusion is certain." However, there are also forecasts that the February inclusion may fail. Ko Kyungbeom, a researcher at Yuanta Securities, explained, "EcoProMPT is expected to fail inclusion in February. Although its market capitalization is very high and the nominal free float ratio suggests a reasonable chance of inclusion, since the stock has not been listed for long, the free float ratio may be conservatively assessed. Considering the supply-demand shock if inclusion fails, we have reflected a conservative rating."

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