Individual Investors Who Made New Stock Investments Ended Up 'Empty-Handed'... Still Not Smiling in February

Most of Top 10 Individual Net Purchase Stocks Record Evaluation Losses
Foreign and Institutional Investors Manage Returns with Investments in China Beneficiary Stocks

Individual investors led the rise in the KOSDAQ index by recording large-scale net purchases, but their actual returns were relatively poor. The stock prices of most of the top net purchase stocks were below the average purchase price. This contrasts with the upward trend seen in the top net purchase stocks of foreign and institutional investors.

According to the financial investment industry on the 4th, from the 3rd to the 28th of last month, individuals recorded a cumulative net purchase of 1.5351 trillion KRW in the KOSDAQ market. The top net purchase stocks included EcoPro BM, Alteogen, Orum Therapeutics, Clobot, Rigachem Bio, and LK Chem.

In February alone, individuals bought EcoPro BM shares worth 159 billion KRW. The average purchase price for individual investors was 128,544 KRW, resulting in an evaluation return rate of -7.4% compared to the current stock price. The loss rate increased as EcoPro BM fell 11.2% on the 28th of last month. The stock price plummeted after EcoPro BM withdrew its plan to transfer its listing to the KOSPI market. EcoPro BM's market capitalization shrank to 11.64 trillion KRW. It dropped to 3rd place in the KOSDAQ market capitalization ranking, overtaken by HLB.

Individuals accumulated net purchases of 148.3 billion KRW and 97.9 billion KRW in Alteogen and Orum Therapeutics, respectively. The purchase prices and current stock prices remained at similar levels.

The evaluation loss rate for LK Chem, which individuals bought worth 57.5 billion KRW, reached -45.6%. LK Chem entered the KOSDAQ market last month at a public offering price of 21,000 KRW. On the first day of listing, it rose to 77,800 KRW but closed at 33,400 KRW on the 28th of last month. This represents a 57% decline from the peak.

Among the top 10 stocks by individual net purchases, only three companies?Alteogen, Orum Therapeutics, and Classys?have current stock prices higher than the average purchase price. Conversely, among the top 10 stocks by individual net sales, eight stocks have current prices higher than the average selling price. This phenomenon, where prices fall when individuals buy and rise when they sell, has been frequently observed. Last month, Hugel, which individuals sold worth 94.7 billion KRW, recorded a monthly increase of 33.5%. Individuals also sold Cafe24 worth 93.7 billion KRW, which rose about 52% last month.

Unlike individuals, foreign and institutional investors showed good investment performance in the KOSDAQ market last month. Foreign investors bought stocks such as HLB, Cafe24, Hugel, Pharma Research, and JYP Entertainment. They purchased Cafe24 worth 94.2 billion KRW and are currently recording an evaluation return of 11.6%.

Institutions focused on accumulating JYP Entertainment, Daewoo Electronics Materials, YG Entertainment, Hugel, and Pharma Research. The evaluation return on investment in Hugel reached 13%.

A financial investment industry official explained, "Last month, expectations related to China's economic stimulus and the lifting of the ban on Korean content influenced the stock market," adding, "This is why foreign and institutional investors showed interest in the entertainment, cosmetics, and beauty sectors."