Cosmetics stocks gain on K-beauty frenzy

[Photo by Lee Chung-woo]

South Korean cosmetics stocks gained ground Friday on the back of growing demand for K-beauty products.

Shares of Hankook Cosmetics Co. were trading at 10,110 won ($7.34) as of 10:20 a.m., up 10.49 percent from the previous day.

Shares of Jayjun Cosmetic Co. were also up 11.65 percent, Tony Moly 3.96 percent, COSMAX Inc. 3.37 percent, and Kolmar Korea Co. 0.58 percent.

“The rise in cosmetics stocks this year comes on the global expansion of K-beauty brands and sales boost in diverse markets,” said Lee Seung-eun, an analyst at Yuanta Securities Co. “Strong sales are also led by seasonal demand such as growing popularity of sun protection items.”

On the main Kospi market, shares of EcoPro Materials Co., on the other hand, plunged nearly 10 percent on Friday after a major investor sold an additional stake in the company.

Shares of EcoPro Materials plummeted 12.51 percent to 116,800 won as of 10:24 a.m. on Friday,

BlueRun Ventures(BRV), one of the major investors in EcoPro Materials, reportedly sold 2.1 million shares in a block deal worth 250.9 billion won.

On the secondary Kosdaq market, shares of Gridwiz Co., a power data technology company, were trading at 72,400 won in the morning, up 81 percent from the offering price of 40,000 won.

Founded in 2013, Gridwiz focuses on various energy technology businesses, including mobility, energy storage systems (ESS), and photovoltaics (PV), with a primary emphasis on a division of demand response (DR).