[Featured Stock] Kolon Plastics, Supplier-Dominant Market... Up Over 4% Intraday

[Asia Economy Reporter Minji Lee] Kolon Plastics is showing an intraday rise of over 4%.

At 9:40 a.m. on the 7th, Kolon Plastics was trading at 12,350 KRW, up 4.22% from the previous trading day. The company's stock price surged to as high as 12,700 KRW during the session.

Despite concerns over global economic slowdown and demand due to China's lockdowns, the price of polyoxymethylene (POM) has reached an all-time high, reflecting a tight supply and demand balance in the stock price. POM is expected to maintain its strength in the second half of the year, with annual operating profit estimated to increase by 65% year-on-year to 45.6 billion KRW.

Jinmyung Lee, a researcher at Shinhan Financial Investment, analyzed, "The market is showing stronger conditions than during the boom period from 2016 to 2018, and the supplier-favored market is expected to maintain tight supply and demand for the next two years. Considering the compound turnaround in the second half and normalization of performance next year, further increases are also possible."