Not all companies lifted by records on Kospi

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Not all companies lifted by records on Kospi

Nearly half of companies listed on the main and secondary bourses saw their stock prices fall this year despite record-breaking jumps in both markets, statistics showed Sunday.

According to the Korea Exchange, stock prices of 302 companies out of 750 firms listed on the main Kospi market, or 40.3 percent, had dropped as of Friday. In the secondary tech-laden Kosdaq, 588 out of 1,223, or 48.1 percent, suffered price falls.

The two markets have been renewing their record highs in recent weeks, supported by foreign buying, solid corporate earnings and anticipation of economic stimulus by the administration just sworn in on May 10. The Kospi had gained 13.32 percent this year, and the Kosdaq 2.56 percent.

Retail investors who are clustered in smaller caps, however, are benefiting less than institutional investors who have better resources to invest in leaders like Samsung Electronics, market watchers said.

“The market is still led by large caps,” Im Sang-guk of KB Securities said. “Once uncertainties about the new administration’s policies are removed, there may be attempts to narrow the gaps between large, middle and small caps.”

Among big losers in the two markets were stocks affiliated with Ban Ki-moon, the former U.N. chief who briefly campaigned to run for president, and President Moon Jae-in, statistics showed.

“It proves that investing in such stocks that have nothing to do with corporate performance or a strong basic structure leads to big losses,” Im said. YONHAP
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