Kosdaq Surges 8.13% to Top 900 Again as Bargain Buying Sparks Rebound in Pharma Shares
Summary
- The Kosdaq closed at 920.57, up 8.13% from the previous session, as bargain buying flowed in and helped the index reclaim the 900 level.
- Large-cap battery names and pharmaceutical and biotech stocks, including Ecopro, Ecopro BM and Alteogen, surged and drove the Kosdaq higher.
- Brokerages said investors should watch for further market-boosting measures and potential re-rating tied to Kosdaq revitalization policies, government policy beneficiaries, and the Kosdaq’s 30th-anniversary event.
Forecast Trend Report by Period
Ahead of its 30th anniversary on July 1, South Korea’s Kosdaq index rebounded after falling to the low-800s. While the Kospi traded mixed amid debate over whether semiconductor shares had peaked, the Kosdaq jumped more than 8% from the previous session to reclaim the 900 level.
The Kosdaq closed at 920.57, up 8.13% from the previous trading day. The Kospi fell as large semiconductor stocks lost momentum amid the postponement of OpenAI’s initial public offering schedule. The Kosdaq, by contrast, climbed from the open as top market-cap names rallied across the board, led by Alteogen, up 8.59%, Ecopro, up 23.69%, and Ecopro BM, up 15.56%. A buy-side sidecar, a temporary halt on program buy orders, was triggered in morning trading.
Pharmaceutical and biotech stocks also stood out alongside battery makers. LigaChem Biosciences, which recently received a 500 billion won ($362 million) investment through the government’s National Growth Fund, rose nearly 20% intraday before closing up 14%. HLB gained 6.92%, ABL Bio jumped 20.18%, and Samchundang Pharm rose 12.30%.
The rebound appeared to reflect bargain buying after the Kosdaq’s recent steep decline. The index had climbed to 1,226.18 in late April, raising expectations, but slipped below 1,000 earlier in June during a volatile stretch before falling to the 830 range. Despite Friday’s sharp gain, the Kosdaq was still down about 2.6% from the start of the year. That contrasts with the Kospi, which has risen nearly twofold.
Brokerages expect buying to rotate into the Kosdaq in the second half as investors grow fatigued with the concentration in semiconductor shares. Seo Sang-young, an analyst at Mirae Asset Securities, said expectations are building around recent policies aimed at revitalizing the Kosdaq. Rotation into battery and biotech shares has also appeared in US markets, making defensive stocks and government policy beneficiaries worth watching.
Expectations are also rising that additional steps to bolster the market could emerge at the Kosdaq’s 30th-anniversary event, to be hosted by Korea Exchange from July 1 to July 3. Kim Doo-eon, an analyst at Hana Securities, said the event would serve as a venue to identify the Kosdaq’s next industries. Companies at the intersection of policy funding, earnings improvement and artificial intelligence bottlenecks will likely be re-rated first.
Lee Sun-a, Korea Economic Daily reporter suna@hankyung.com
Korea Economic Daily
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