"Should We Sell LG Ensol or Not?" Aimed for 'Ttasant' but Fell Consecutively... Retail Investors Sigh

LG Energy Solution Drops for Second Day... Individual Investors 'Anxious'
MSCI Index Inclusion Sparks Attention on Stock Direction

Customers are consulting at the Shinhan Financial Investment branch in Yeouido, Seoul, on the 19th, the closing day for the public offering subscription for general investors of LG Energy Solution.
[Photo by Yonhap News]

[Asia Economy Reporter Han Seung-gon] "I feel really empty." , "I've been having more fights with acquaintances."

Investors in LG Energy Solution (LG EnSol), which made a spectacular debut by ranking second on the KOSPI by market capitalization immediately after its listing, have recently been sighing deeply. On the 28th, LG EnSol closed at 450,000 won after a drop of 10.89%. Although it is still above the public offering price (300,000 won), it failed to achieve the 'ttasang' (opening price formed at twice the public offering price followed by the upper limit price) and has been showing a continuous downward trend.

As a result, various opinions about LG EnSol circulate among office workers. Kim, a company employee in his 30s and an individual investor, said, "The price is still above the public offering price," but added, "Honestly, I'm a bit anxious about when it might turn negative." He continued, "Sometimes I think I should have just sold it right away."

On the other hand, there are also opinions favoring long-term investment. Park, a company employee in his 40s, said, "I invested thinking of it as the leading stock in electric vehicle batteries," and added, "I don't plan to sell quickly and buy again; I intend to manage it that way."

Meanwhile, there are complaints that disputes have increased due to the decline in LG EnSol's stock price. Choi, a company employee in his late 20s, said, "I expected LG EnSol to achieve ttasang, but it failed," and added, "I've been a bit sensitive, arguing against acquaintances who say 'You will eventually incur losses.'"

On the afternoon of the 28th, the KOSPI closing price was displayed on the status board in the dealing room at the Hana Bank headquarters in Euljiro, Jung-gu, Seoul. On that day, the KOSPI closed at 2,663.34, up 48.85 points (1.87%) from the previous session. [Image source=Yonhap News]

In this regard, there is also a survey result that focusing too much on profits and losses related to stock investment makes it practically impossible to live a normal daily life. According to the Korea Center on Gambling Problems Management in March last year, the number of consultations for stock addiction in 2020 was 5,523 cases, an increase of about 56% from 3,540 cases the previous year. Most cases involve people who borrowed money to invest in stocks, lost money, and ended up causing difficulties for their families, leading them to seek help.

Meanwhile, despite the continuous decline in LG EnSol's stock price, there is also good news. LG EnSol has met the overall market capitalization and free float market capitalization criteria for early inclusion in the MSCI (Morgan Stanley Capital International) index.

According to the financial investment industry on the 28th, MSCI confirmed and announced the early inclusion of LG EnSol in the emerging markets index based on the market close on the 27th. The MSCI index is directly linked to foreign capital. Inclusion in the MSCI index can be expected to bring passive fund inflows by stock, and there is a possibility of a future stock price increase.

However, target stock prices vary by securities firms. Meritz Securities set the highest target price at 610,000 won. In contrast, Yuanta Securities forecasted a drop to 390,000 won. Korea Investment & Securities set the target price at 600,000 won, Eugene Investment & Securities at 520,000 won, Samsung Securities at 440,000 won, SK Securities at 430,000 won, and NH Investment & Securities at 430,000 won.

Earlier, LG EnSol was listed on the KOSPI on the 27th. The opening price the day before was set at 597,000 won, a 99% increase from the public offering price (300,000 won). On the first day of listing, LG EnSol's stock price fluctuated due to foreign selling pressure, dropping as much as 24.62% from the opening price to 450,000 won during the day, but also rose to 598,000 won.