Quantum Jump in Aluminum, COVID-19, and Carbon Neutral Stocks in the Second Half of the Year

[Asia Economy Reporter Park Jihwan] In the second half of this year, domestic stock markets showed a strong surge in aluminum, COVID-19, and carbon neutrality-related stocks.

According to the Korea Exchange on the 6th, in the second half (July 1 to September 3), the KOSPI saw the highest gains in the following order: Joil Aluminum (182.7%), SK Bioscience (111.4%), Sama Aluminum (93.7%), SeAH Steel Holdings (89.7%), and Unid (84.3%).

Joil Aluminum and Sama Aluminum benefited from the structural upswing in aluminum, known as a 'supercycle,' driven by increased eco-friendly demand such as electric vehicles and renewable energy. Particularly, while demand is rapidly increasing, supply from major producing countries is limited due to carbon emission regulations, suggesting a continued strong aluminum price trend. On the 1st (local time), aluminum spot prices on the London Metal Exchange (LME) reached $2,690 per ton. This is the first time aluminum prices have exceeded $2,600 per ton since July 2011. Choi Jaeho, a researcher at Hana Financial Investment, said, "Aluminum is at the starting point of a supercycle," adding, "Due to a global supply-demand mismatch, the cycle is unlikely to end in the short term."

SK Bioscience's upward trend is also notable. Last month, the government announced a plan to invest 2.2 trillion won over five years to develop a domestic COVID-19 vaccine and aims to rank fifth in the global vaccine market by 2025. In addition to government policy, the news of clinical phase 3 approval for SK Bioscience's COVID-19 vaccine candidate 'GBP510' is analyzed to have positively influenced the stock price.

Carbon neutrality-related stocks such as SeAH Steel Holdings and Unid also ranked high in stock price gains. SeAH's entry into the offshore wind power market acted as a positive factor beyond its core business. In July, SeAH announced plans to establish a monopile production plant for fixed offshore wind power structures in the UK, worth 400 billion won over three years. The company aims to build the world's largest plant with an annual production capacity of 240,000 tons and generate over 500 billion won in annual sales. Unid, the global leader in the potassium-based (caustic and potassium carbonate) market, benefited from carbon capture policies and performance expectations. The financial investment industry analyzes that carbon capture has become essential for carbon reduction by 2030 and carbon neutrality by 2050. Potassium carbonate is a key raw material used in carbon dioxide capture.

On the KOSDAQ, COVID-19-related stocks showed remarkable gains. The highest returns were seen in the following order: Korea BNC (424.5%), Nano CMS (324.6%), Bioneer (275.9%), Sejong Medical (212.4%), and EcoPro HN (179.7%).

Korea BNC secured exclusive manufacturing and sales rights for the COVID-19 treatment substance Antroquinonol in Korea, Russia, Turkey, and Ukraine in January this year and is developing a COVID-19 treatment in cooperation with Golden Biotech. Nano CMS's technology using far-ultraviolet wavelengths to eliminate airborne COVID-19 aerosols indoors was published in a global bio-science journal, positively influencing investor sentiment. Bioneer, ranked third in gains, attracted attention with its efforts to register European certification for functional cosmetics that alleviate hair loss symptoms and the start of toxicity testing for its subsidiary Sernagen Therapeutics' COVID-19 inhalation treatment.

Sejong Medical showed strength due to merger and acquisition issues. The stock surged following news that management rights were sold to Time Investment, a venture capital and management consulting specialist. EcoPro HN is classified as a carbon neutrality-related stock. It is considered a representative carbon neutrality stock as its main businesses include fine dust reduction solutions, greenhouse gas reduction solutions, and cleanroom chemical filters.