[Special Stock] Samsung Heavy Industries Preferred Stock Hits Upper Limit for 9 Consecutive Trading Days... 10 Times in Half a Month, How Long Will It Last?

[Asia Economy Reporter Oh Ju-yeon] The preferred shares of Samsung Heavy Industries (Samsung Junggongwoo) have surged 10 times in just two weeks, recording the upper price limit for nine consecutive trading days.

As of 9:26 a.m. on the 16th, Samsung Junggongwoo's stock price was traded at 570,000 won, up 29.25% from the previous day. Considering that the closing price on the 1st of this month was 54,500 won, it has skyrocketed more than 10 times in just over two weeks.

This sharp rise in stock price is driven by recent large-scale orders received by domestic shipbuilders, but the increase in Samsung Junggongwoo’s stock price is so steep that it shows signs of overheating.

The last time Samsung Junggongwoo’s stock price recorded a historic upper price limit was in June 2015. At that time, the stock price, which was 45,000 won on June 26, hit the upper price limit for four consecutive trading days until July 2. Samsung Junggongwoo surged fourfold during this period, hitting the upper price limit for five consecutive trading days (166,000 won), but the rally stopped as the price closed between -10% after opening at +29%. It is uncertain how long this rally will continue, but based on past cases, even if the stock hits the upper price limit during the day, it can sharply fall within half a day, so investors need to be cautious.

The reason Samsung Junggongwoo’s stock price can continue the upper price limit relay in a short period is due to the small number of circulating shares.

The number of listed shares of Samsung Junggongwoo is only 114,845, which is about 0.2% of the common shares. Therefore, it is considered a stock where so-called 'forces' can use a strategy to consolidate the upper price limit.

Accordingly, the Korea Exchange designated Samsung Junggongwoo as an 'investment warning stock' due to the short-term rapid price increase on the 9th and suspended trading for one day. Then, on the 12th, it was designated as an 'investment risk stock' at the next level and trading was suspended for one day.