(Photo = Getty Image Bank)
The main character of the stock market last year was the KOSDAQ. It ranked first among the indexes of major countries with an increase rate of 45%. However, it hardly climbed this year. This is because interest in small and mid-cap stocks declined as the large-cap rally continued. However, there is a prospect that it is time for small and medium-cap stocks to move. Although the KOSPI index on the 26th received a large adjustment, it is analyzed that the KOSDAQ surpassed 1000 during the intraday and showed the possibility of an increase.
◆Cheonsudoc, the first since the dotcom bubble
On the 26th, the KOSDAQ index rose 4.29 points and started trading at 1003.59. It also crossed the 1006 line in the morning. Since then, as the global stock market has been adjusted, it has also declined. It is the first time that the KOSDAQ exceeded the 1000 line since September 15, 2000, when the information technology (IT) bubble occurred.
Institutions and foreigners led the decline, selling a total of 3756 billion won. Individuals defended the stock price by buying 4146 billion won.
Stock prices gave meaning to the fact that the KOSDAQ’s decline was less. On that day, the KOSDAQ fell 0.53% to 994.00, while the KOSPI plunged more than 2%. Compared to major markets such as the Shanghai Composite Index (-1.31%), Hong Kong Hang Seng Index (-2.34%), and Japan Nikkei Index (-0.96%), the performance was good.
It is an analysis that circulation trading continues as a KOSDAQ stock. It is the strength of low-cost merit and advancement in small and medium-sized technology stocks. Jeong Yong-taek, head of the IBK Investment & Securities Research Center, explained, “The KOSDAQ has hardly increased compared to the KOSPI since December last year.” In particular, it is an analysis that the KOSDAQ has begun to attract attention as funds have come in to small and medium-sized technology stocks that have risen relatively less.
◆“Attention to marginalized small and medium-cap stocks”
The stock market contends that it is time to pay attention to small and medium-cap stocks. This is because the price merit of KOSDAQ small and medium-cap stocks stands out as KOSPI large-cap stocks surge all at once. The KOSDAQ PER is 1.3x compared to the KOSPI share price-earnings ratio (PER), below the 10-year average of 1.4x.
Sang-ho Kim, a researcher at Shinhan Financial Investment, said, “When KOSDAQ’s PER was relatively low, the KOSDAQ’s increase rate significantly exceeded the KOSPI.” In fact, the KOSDAQ yields for 2012-May 2013 and 2017-2018 were 14.4% and 26.3%, respectively, far exceeding the KOSPI yields of 1.9% and 10%. This is the time when the KOSDAQ PER was low.
KTB Investment & Securities recommended small and medium-cap stocks that belong to high-growth industries as profits improved this year. L&K Bio (medical device), Intellian Tech(74,000 +2.49%)(Universe), Hwanin Pharmaceutical(18,550 +2.77%)(Mental Health), Baekkwang Industry(4,385 -3.31%)(Material localization), SPECCO(11,600 +2.20%)(Wind Power), Rn2 Technology (autonomous driving), Russell(5,340 +11.72%)(Semiconductor), tyrobotics(8,420 -3.22%)(Robot) etc.
Kyobo Securities is expected to improve earnings this year, and KH Vatech(18,950 -0.79%), Amotech(39,050 +1.17%), Wemade(40,850 +0.62%), Sekyung Hi-Tech(23,850 +5.76%)And CJ Freshway. SM(32,900 -2.52%)And YG Entertainment, etc.(20,550 +7.03%), Tech Wing(25,200 +7.92%) Semiconductor equipment stocks were also introduced as recommended stocks.
◆Resumption of short selling is good?
Shinhan Investment & Securities presented the top picks with earnings momentum and an increase in the majority shareholder’s stake. Compared to large-cap stocks, small- and mid-cap stocks are likely to have a close relationship with management by large shareholders. Com2uS(172,600 -1.37%), SFA(41,150 +1.60%), NICE evaluation information, Webzen(39,300 -6.65%), ITM Semiconductor(56,100 +1.08%), PI Advanced Materials(42,250 -1.40%) Etc. were selected as events that meet these conditions. Researcher Sang-ho Kim said, “If the profit outlook is revised upward and the share of the majority shareholder increases, the reliability can be evaluated as high”.
The securities industry is betting on the fact that the KOSDAQ has gained a lot of good news. There is also an analysis that the short selling price, which is expected to resume as early as March, will be a good news for the KOSDAQ. This is because the ban on short selling is expected to be lifted from large-cap KOSPI. This explains that it could be a catalyst for moving individual buying, which is concentrated in large-cap stocks, to small and mid-cap stocks. KTB Investment & Securities said, “There is a possibility of moving from the KOSPI to the KOSDAQ due to the nature of individuals with high resistance to short selling.”
It is analyzed that the avoidance of pension funds, a chronic problem of KOSDAQ, is also improving. On the 19th, the government announced a plan to increase the share of KOSDAQ investment in pension funds, which is currently 1~2%.
Reporter Park Uimyung [email protected]