L&F Rises to 3rd in Market Cap; Ecopro BM Closely Chasing 1st Place
[Asia Economy Reporter Song Hwajeong] The top stocks by market capitalization on the KOSDAQ are being reshaped by the rise of secondary battery stocks. The previous duopoly of bio and gaming sectors is evolving into a triopoly with the addition of secondary batteries.
According to the Korea Exchange on the 28th, L&F rose to third place in market capitalization on the 24th, resulting in secondary battery-related stocks occupying both second and third places. L&F, which was ranked eighth earlier this month, has steadily climbed to third place. L&F's stock price surged about 67% just this month. The price, which was in the 110,000 KRW range at the beginning of the month, soared to the 190,000 KRW range. On the 24th, it even reached an intraday high of 198,800 KRW, approaching 200,000 KRW.
Last month, Ecopro BM took second place in market capitalization, and this month L&F rose to third place, leading a significant shift among the top KOSDAQ stocks in market capitalization. Ecopro BM, which has shown a strong upward trend since the second half of the year, saw its stock price rise from the 300,000 KRW range at the beginning of this month to surpass 470,000 KRW. It has maintained a strong rally with 12 consecutive days of gains up to the previous day, drawing attention as to whether it can challenge for first place.
The rise of secondary battery stocks was also aided by the weakness of gaming stocks. Pearl Abyss and Kakao Games, which held second and third places in market capitalization in the first half of the year, faltered and gave up their positions. Kakao Games, which was second, lost its spot to Ecopro BM early last month and has continued to weaken, falling to seventh place. Pearl Abyss, which competed with Kakao Games for second place, also dropped to sixth. Kakao Games has fallen more than 15% this month, and Pearl Abyss has declined nearly 13%.
Bio stocks, except for the top-ranked Celltrion Healthcare, have also experienced frequent position changes. Celltrion Pharm, which was second at the end of June, dropped to fifth; Seegene, previously fifth, fell to ninth; and Alteogen, which was tenth, slipped out of the top ten. Conversely, HLB, which was ninth, rose to fourth place.
If the recently weak gaming and bio stocks rebound, competition for the top market capitalization rankings is expected to intensify again, but the strength of secondary battery stocks is expected to continue for the time being. Jang Jeonghoon, a researcher at Samsung Securities, said, "Valuations of secondary battery material companies are reaching historic highs, and the rise in key metal prices has entered the high range seen from 2016 to 2018, so investors need to manage some risk considering the possibility of a short-term price correction after a rapid rise." However, he added, "Overall for the second half of the year, a positive stock trend is expected due to momentum from the expansion of electric vehicle (EV) battery volumes centered in Europe and the response to new demand regions' capacity expansions."
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