Seven out of 10 Korean stocks turn to losers versus last year

Seven out of 10 South Korean stocks have fallen this year against last year to underscore the extent of bearishness of the Korean market.

According to the Korea Exchange, 1,809 stocks or 72.4 percent of 2,498 trading on the Kospi and Kosdaq excluding exchange-traded funds (ETFs) were performing lower from last year as of the end of May.

On the Kospi 722 or 76.8 percent of 940 stocks were losers and on the Kosdsaq, 1,087 or 69.8 percent of 1,558 stocks.

The biggest loser G9 Pharma has lost 96 percent of its value to 2,120 won versus last year’s peak of 49,812 won ($39.38). Kospi’s biggest loser BK Tops shed 90.22 percent from 9,250 won to 904 won,

Cosmetics, pharmaceutical, and retail stocks saw their prices halved, with Amorepacific down 45.99 percent, celltrion down 45.98 percent, and Lotte Hi-Mart down 45.07 percent. Of the Kospi 200 Index, Shin Poong Pharm suffered the biggest loss of 57.63 percent, while LG Household & Healthcare slid 53.92 percent from 1.5 million won to 705,000 won. HDC Hyundai Development lost 53.84 percent, dragged down by the collapse of a building under construction.

Growth stocks also suffered big. NCSoft fell 48.06 percent from 852,000 won to 442,500 won. Kakao Pay also lost half of its value to 94,000 won. Krafton fell 44.81 percent from 448,500 won to 247,500 won. Kakao trimmed 33.93 percent from 122,000 won to 80,600 won. Naver was down 25.69 percent from 358,000 won to 266,000 won. It renewed its 52-week low of 262,500 won, following the U.S. social media firm Snap’s nosedive on a weak outlook.

The faster tightening roadmap in the U.S. has hit hard on Korean stocks.

Some are expecting a brief summer rebound, although interest rate tantrums remain as risk.

As liquidity has shrunken, investors need to turn to value stocks with consistent profits,” said Heo Nam-kwon, head of Shinyoung Asset Management.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]