Korean bio stocks fly high on improved investor sentiment

Hanmi Pharmaceutical Co. headquarters. [Courtesy of Hanmi Pharmaceutical]

South Korean bio and healthcare stocks have gained recently on improved investor sentiment and favorable events related to treatments.

According to the Korea Exchange, shares of Hanmi Pharmaceutical Co. closed at 325,500 won on Wednesday, up 14.61 percent from the previous session.

Other stocks also closed higher - SK biopharmaceuticals Co. was up 8.41 percent, SK bioscience 4.58 percent, Yuhan Corp. 5.26 percent, Celltrion Healthcare Co. 4.49 percent.

Foreign and institutional investors were major net buyers.

“Investor sentiment that had stayed in chip stocks has moved to the healthcare sector,” said Lee Soo-jung, an analyst at Meritz Securities Co.

Noh Dong-gil, an analyst at NH Investment & Securities Co., also said that market funds are undergoing a shift as the bias sentiment toward secondary batteries diminishes.

“The sectors showing exceptional performance encompass a range of previously overlooked stocks, ranging from software, cosmetics, apparel, retail healthcare, hotel, and leisure,” Noh said.