(TrendHub KR – Posts by ICARUS Journalist) On February 7, 2024, the South Korean stock market showed a bullish trend. Both the KOSPI and KOSDAQ indices experienced gains and closed the session positively. This upward momentum can be attributed to the positive movement in the U.S. stock market and the resurgence of low PBR (Price-to-Book Ratio) related stocks following profit-taking adjustments.
The sectors leading the market’s upward trajectory were mainly finance, non-life insurance, and automobiles. Particularly noteworthy was the announcement by the Bank of Korea that the current account surplus for December last year amounted to $7.41 billion, indicating a recovery in exports and easing economic sluggishness. This positive news had a favorable impact on the market sentiment. Moreover, the net buying by foreign investors and institutional investors played a pivotal role in driving the indices higher, while individual investors were net sellers.
Dual Insight Analysis
Positive Investment Perspective
The rise in the KOSPI and KOSDAQ indices was fueled by net buying from foreign and institutional investors. Additionally, the significant increase in the current account surplus, as reported by the Bank of Korea, and the positive evaluation of the economic outlook contributed to the market’s optimism.
Negative Investment Perspective
The substantial net selling by individual investors indicates lingering concerns about domestic consumption weakening. Moreover, the reliance of the KOSPI and KOSDAQ indices on the strength of low PBR related stocks poses risks that should be considered.
Featured Stocks and Theme Analysis
Superconducting Accelerator Technology Theme
- Korea Steel (+29.90%) / Collaboration between Korea University Sejong & KAT: Korea Steel and its subsidiary, KAT, collaborated with Korea University Sejong Campus to develop a 1.5 GHz superconducting accelerator tube. This innovation enables beam acceleration at absolute temperatures of 4K or 2K, significantly increasing the acceleration rate of beams in accelerators. The development is expected to make significant contributions to the domestic and international development of superconducting accelerators, highlighting the ongoing research collaboration between Korea University and KAT, as well as international cooperation with KEK in Japan.
Nuclear Power and Core Monitoring System Theme
- Woojin Entech (+29.98%): Woojin Entech possesses core technology for nuclear power plant monitoring systems in line with the government’s plan for the development and early commercialization of Small Modular Reactors (SMRs) at the world’s highest level. This technology is essential for nuclear power operation, and Woojin Entech’s expertise positions it strongly to participate in all stages of nuclear power generation cycles. The company’s involvement in nuclear plant construction, commissioning, regular maintenance, preventive maintenance planning, and dismantling has attracted investor attention with low trading volume on the first day of listing.
Eco-friendly Vehicle and Related Technologies Theme
- Korea F&T (+14.11%): Korea F&T, as a supplier of eco-friendly car canisters to global OEMs such as Porsche, has developed the world’s first eco-friendly car canister. The company operates nine overseas branches in five countries and is establishing a foothold as a supplier of eco-friendly car parts in the global market. In particular, it has been selected as the supplier of body parts for the ID BUZZ, an electric vehicle based on Volkswagen’s exclusive MEB platform, playing an important role in supplying eco-friendly car parts in the European market.
- Hyundai HIMS (+6.98%): Hyundai HIMS specializes in manufacturing ship deck blocks and is an abbreviation of Hyundai Machinery and Service. The company holds major customers such as Hyundai Heavy Industries, Hyundai Samho Heavy Industries, and Hyundai Mipo Dockyard, and is attracting attention in the market by establishing a production system that covers all stages from steel processing to ship block production and ironwork painting.
Electric Vehicle and Secondary Battery-related Technologies Theme
- Ecopro (+13.75%) / POSCO FutureM (+3.46%) / LNF (+3.70%): These companies hold significant positions in the secondary battery market. Particularly, Ecopro announced a stock split plan, attracting investor interest. These moves aim to strengthen competitiveness and expand market share in the secondary battery industry.
Bio and Healthcare Sector Companies
- HLB Innovation (+12.45%) / HLB (+2.30%): HLB announced major results from phase 3 clinical trials combining riboceranib and camrelizumab, targeting liver cancer. Based on these results, the company aims to achieve significant market share, revenue, and operating profit in the liver cancer treatment market. The NPV (Net Present Value) self-estimated by the company is approximately 17 trillion won, demonstrating confidence in sustained growth.
- Cureacle (+10.04%): CEO Yoo Jae-hyun announced the potential of CU06, based on the results of phase 2a clinical trials, in the diabetic macular edema injectable market. Positive expectations for CU06’s market potential have driven up the stock price.
Semiconductor and Electronic Components Related Companies
- SK Hynix (+4.31%) / Samsung Electronics (+0.13%) / ISU Petasys (+5.48%) / KC Tech (+12.46%): These companies play crucial roles in the semiconductor and electronic components industry, particularly SK Hynix and Samsung Electronics maintain a leading position in the global semiconductor market. ISU Petasys and KC Tech are contributing to technological innovation and market expansion.
Low PBR Stocks and Shareholder Return Policy Themes
- Taekwang Industrial (+13.33%) / Hanwha (+6.96%) / GS (+6.64%) / SK Square (+6.09%): These companies are drawing market attention through the strengthening of low PBR stocks and shareholder return policies. In particular, SK Square is focusing on enhancing shareholder value by announcing a plan to buy back and burn its own shares.
#2024February7thStockMarketAnalysis #KospiRise #KosdaqRise #FinanceSector #InsuranceSector #AutomobileSector #ForeignNetPurchase #InstitutionalNetPurchase #FeaturedStocksCeiling #SuperconductingAccelerator #NuclearMonitoringSystem #EcoFriendlyCarParts #ElectricVehicleParts #SecondaryBattery #BioHealthcare #Semiconductor #ElectronicParts #LowPBRStocks #ShareholderReturnPolicy
Disclaimer: This article is written solely for informational purposes and should not be interpreted as investment advice or financial consulting in any form. TrendHub News does not bear legal responsibility for the content of the article. While the information provided is based on reliable sources, market conditions are subject to change. All investment decisions should be made under the investor’s own responsibility, and this article should not be the sole basis for any investment decision. It is recommended to consult with a professional before making any significant investment decisions.