Bio Leaders Samba and Celltrion, Divergent Stock Prices Due to Supply and Demand

Since the Beginning of This Month, Samsung Biologics Rose by 10.9%, While Celltrion Fell by 4.6%

[Asia Economy Reporter Song Hwajeong] Samsung Biologics and Celltrion, the leading stocks in the bio sector, are showing divergent stock price trends. Samsung Biologics, which had been on a downward path after peaking in January, has recently shown continuous strength and approached its high point, while Celltrion continues to show weakness.

As of 9:15 AM on the 20th, Samsung Biologics was trading at 847,000 KRW, up 17,000 KRW (2.05%) from the previous day. In contrast, Celltrion recorded 304,000 KRW, down 5,500 KRW (1.78%).

Samsung Biologics has been maintaining a strong upward trend recently, rising 10.9% since the beginning of this month. During the previous trading session, it rose to 867,000 KRW intraday, getting closer to the high of 883,000 KRW recorded on January 11. After peaking in January, Samsung Biologics experienced a correction and dropped to the 710,000 KRW range in early last month. However, it has steadily risen this month, recovering above 800,000 KRW. Except for just four days this month, the stock price has risen every day.

On the other hand, Celltrion has fallen 4.6% since the beginning of this month. The stock price, which was in the 320,000 KRW range at the end of last month, has shown continuous weakness and recently fell below 310,000 KRW.

The divergent stock price trends between Samsung Biologics and Celltrion are interpreted as being due to supply and demand factors. Foreign investors and institutions have been net buyers of Samsung Biologics for consecutive days, driving up the stock price. Until the previous day, institutions had net bought Samsung Biologics for 9 consecutive trading days, and foreign investors for 7 consecutive trading days. Notably, despite ongoing selling pressure in the stock market, institutions purchased Samsung Biologics worth 219.6 billion KRW this month, making it the most heavily net bought stock. In contrast, Celltrion was net sold by 97.7 billion KRW.

Expectations for the 4th plant are believed to be reflected in Samsung Biologics’ stock price. Lee Dong-geon, a researcher at Shinhan Financial Investment, said, "This year’s stock price will be influenced more by the momentum from the 4th plant event, which will drive high growth in future earnings, rather than short-term performance." He added, "Stock price increases are expected based on the momentum from new orders for the 4th plant, which will begin in earnest from the second half of this year through the first half of next year."

On the other hand, Celltrion appears to be hindered by the resumption of short selling next month. Sun Minjeong, a researcher at Hana Financial Investment, said, "Investment sentiment toward Celltrion is subdued due to the resumption of short selling in May," but analyzed, "Even if short selling resumes, since the stock price has already undergone a correction, a sharp decline is unlikely to occur."