KOGAS surges on strong earnings; obesity drug developers gain optimism

[Courtesy of Korea Gas Corporation]

Korea Gas Corporation (KOGAS) saw a significant increase in its stock price during early trading on Monday, bolstered by expectations of improved performance and dividends in the second half of the year. As of 9:18 a.m., shares of KOGAS were trading at 44,150 won ($32.33), up 6.64 percent from the previous session.

This surge comes after the state-owned gas monopoly reported a remarkable 127.1 percent on-year increase in operating profit despite a 7.8 percent decline in revenue for the second quarter. The quarterly operating profir of 465.7 billion won significantly exceeded market expectations of 276.9 billion won. Analysts attribute this strong performance to the resolution of one-time profit-reducing factors, including losses from raw material cost adjustments and a favorable outcome in a bid-rigging lawsuit.

In related news, pharmaceutical stocks, particularly those involved in obesity treatment development, also showed strong performance in early Monday trading. As of 9:21 a.m., Daehwa Pharmaceutical was up 12.99 percent, trading at 10,700 won. Other notable gainers included Daebong LS (up 10.0 percent), Raphas (up 11.3 percent), Ildong Pharmaceutical (up 5.8 percent), and Hanmi Pharmaceutical.

This surge in pharmaceutical stocks follows reports from the U.S. that Eli Lilly saw a sharp increase in sales of its obesity treatment, leading to a jump in its stock price last week

Additionally, the resurgence of Covid-19 has fueled a rally in stocks related to treatment and vaccine development. SK bioscience was trading at 58,900 won, up 6.3 percent, while Shinpoong Pharm and Cellid saw significant gains of 20.1 percent and 7.3 percent, respectively.