The stock price of Daegu Department Store has rebounded sharply for the third consecutive day, breaking away from a long-term downward trend. This is interpreted as buying interest flowing in as the stock's undervaluation appeal becomes highlighted.
As of 10:56 AM on the day, Daegu Department Store was trading at 7,410 KRW, up 10.43% from the previous day. The stock price hit a bottom at 6,280 KRW on the 2nd and has been rebounding for three trading days.
Once the representative department store of Daegu Metropolitan City, Daegu Department Store has experienced long-term performance deterioration as major department stores such as Shinsegae and Lotte entered Daegu and increased their sales. Since operating profit turned negative in 2016, it has continued to post losses for eight consecutive years.
Along with the worsening performance, the stock price also showed a long-term downward trend for several years. During the boom period, the stock price nearly reached 39,500 KRW but failed to overcome its weakness as a regionally based department store.
Recently, there has been an assessment that the stock price has fallen excessively compared to the corporate value, leading to some buying interest. On the 7th, when the stock price rebound began, foreign investors net bought 62,553 shares, and on the previous day, institutions and individuals also net bought shares.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
