[Weekly HOT Stocks] Declining Interest in Kakao Games... Individuals Continue to 'Buy'

Stock Prices Declined for Five Consecutive Trading Days from the 14th to the 18th

On the morning of the 2nd, investors are applying for and consulting on Kakao Games IPO subscriptions at the Korea Investment & Securities branch in Yeouido, Seoul. (Photo by Yonhap News)

[Asia Economy Reporter Kum Boryeong] The upward momentum of Kakao Games, one of the biggest IPOs in the second half of the year, has come to a halt. However, individual investors showed optimism about the stock price increase by buying Kakao Games shares.

According to the Korea Exchange on the 19th, Kakao Games closed at 63,400 won the previous day. This represents a 1.86% (1,200 won) decrease compared to the previous session.

Kakao Games attracted significant market attention as one of the largest IPOs in the second half of the year. During the general subscription held on the 1st and 2nd, the combined competition rate reached 1,524.85 to 1. The subscription deposit alone amounted to about 58 trillion won, reflecting the intense enthusiasm.

On the listing day, the 10th, the stock price started at twice the public offering price (24,000 won) and hit the upper limit, rising to 62,400 won. This is known as a 'ttasang' (a term describing a stock that hits the upper limit price on the first day of trading). On the following day, the 11th, it again reached the upper limit and closed at 81,100 won.

However, Kakao Games’ stock price has been declining for five consecutive trading days from the 14th to the previous day. The trend shows a drop to 73,800 won on the 14th, 67,500 won on the 15th, 66,300 won on the 16th, and 64,600 won on the 17th.

In this situation, individual investors purchased Kakao Games shares. From the 14th to the 18th, Kakao Games ranked second among the top stocks in net purchases by individual investors. During this period, individuals net bought Kakao Games shares worth 184.1 billion won.

Lee Mina, a researcher at Daishin Securities, explained, "Kakao Games’ stock price is in a phase of increased volatility as the initial high interest after listing gradually decreases," adding, "After stabilization, the stock price is expected to continue its strength until the release of 'Elyon' in November."