Theborn Korea, Young Poong Newly Added
Short Selling Bids Allowed Only in Main Market
From this week, the range of stocks available for commuters investing in the stock market will expand to 796.
According to NextTrade on the 31st, the number of stocks tradable on the Alternative Trading System (ATS) will increase from the existing 350 to 796 starting today. Although it was initially planned to expand to 800 stocks, the final number was set at 796 due to the designation of certain stocks such as HLB Life Science, Bridge Biotherapeutics, Appclon, and Eoflow as management stocks, including those under investment caution.
Among the KOSPI-listed companies, newly added stocks include Theborn Korea, Young Poong, Isu Petasys, Korean Re, and HDC Hyundai Development Company. Newly joining KOSDAQ-listed companies include Refine, Manyo Factory, Mirae Semiconductor, Millie's Library, Sollid, and Shinseong ST. However, trading of Hyosung Chemical (trading suspension) and Nature Cell (designated as investment warning stocks) will be restricted until the reasons for the restrictions in the multilateral trading system are resolved.
With the final increase of NextTrade's tradable stocks to 796, trading activation is expected to gain further momentum. In the first to second week after launch, the average daily trading volume of NextTrade remained around 15.5 billion KRW, but after the third phase expansion (350 stocks) from March 24 to 27, it surged to approximately 2.1061 trillion KRW. In particular, Shinhan Investment Corp., which had only participated in the pre- and after-market, will join the main market from today, and Woori Investment & Securities will newly participate in the pre- and after-market.
The large-volume and basket trading market, which had been delayed due to issues with the Volatility Interruption (VI) mechanism, will also open. Large-volume and basket trading involve trading stocks worth 50 million KRW (large-volume trading) or 5 stocks/200 million KRW (basket trading) or more at an agreed price between parties on the exchange, mainly used by institutional investors. NextTrade's large-volume and basket trading will operate from 8 a.m. to 6 p.m., and transactions will be conducted through a negotiated trading method where the bid details between trading parties match.
Short selling, which resumes from today, will also be available on NextTrade. However, in the regular market, short selling bids can only be submitted on the main market, and short selling bids cannot be submitted in the pre-market and after-market. Any unexecuted short selling bids remaining at the end of the main market will be canceled in bulk.
Meanwhile, on the NextTrade pre-market, there have been occurrences where the initial price is formed at the upper or lower limit solely by odd-lot orders immediately after trading begins, followed by a period of no price fluctuation, and then the stock price experiences sharp rises and falls as it moves toward a normal price. This phenomenon requires investors' caution. The cause is attributed to the pre-market having less liquidity than the regular market and determining the initial price through a 'continuous trading' method rather than 'single-price trading.'
The Financial Supervisory Service stated, "If such cases expand and reproduce, there is a risk of distorting market prices or causing others to make incorrect judgments or misunderstandings," and added, "Since follow-up trading due to price illusion effects may occur, causing unexpected damage, investors are urged to exercise special caution."
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