[Asia Economy Reporter Minwoo Lee] The stock price of Codes Combine is on the rise. The Korea-Japan relationship, which had been in a lull, has deteriorated again since the beginning of this month, making Codes Combine a 'patriotic theme' stock considered as a replacement for Uniqlo. It is also analyzed that the fact that the major shareholder's stake exceeds 60%, making it a 'scarce stock' with low trading volume, has acted as a positive factor.
As of 10 a.m. on the 19th, Codes Combine's stock price recorded 2,850 won, up 22.06% from the previous day. This is because it overlaps with both the patriotic theme stock and the scarce stock theme.
Codes Combine, which sells underwear products, also benefited last year when sales of Japanese company Uniqlo's underwear products sharply declined. As Korea-Japan relations have recently become strained again, expectations for anti-Japanese movements have increased, attracting investment sentiment. The Japanese government expressed regret yesterday regarding South Korea's submission of a request to the World Trade Organization (WTO) for the establishment of a panel to resolve Japan's export restrictions issue. The legal dispute between the two countries over Japan's export restrictions against Korea appears to be reigniting at the WTO.
There is also an analysis that Codes Combine is included in the rapid rally of preferred stocks with low trading volume. Samsung Heavy Industries' preferred stock recorded the upper limit price for 10 consecutive trading days until the previous day, with its stock price soaring to the 800,000 won range. Since the major shareholder Cotton Club holds a 60.04% stake in Codes Combine, it is expected that Codes Combine could be included in this preferred stock rotation trend due to its low trading volume.
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