“I got on the last train with Eco and ended up in the bomb squad.”

This is a complaint from a netizen posted on an online community. Individual investors fell into chaos as secondary battery stocks, which had recently been토토사이트 running fast, plummeted for two days in a row, increasing volatility. Ecopro collapsed by 1 million won due to the continued decline that day.

According to the Korea Exchange on the 27th, EcoPro closed at 985,000 won, down 243,000 won (19.79%) from the previous day. Eventually, it ended below the 100 million mark. On the 18th, it recorded a closing price of 1,118,000 won, and it has been 7 trading days since the transaction ended above 1 million won. After soaring to 1,539,000 won the previous day, it plummeted 25.3% from the peak, but it fell further that day. The stock price is down 36% from the previous day’s high. The market capitalization, which exceeded 40 trillion won at the peak, shrank to 26.2283 trillion won on the day. As the situation worsened, about 14 trillion won flew away in just one day.

The sighs of individual investors who were bitten at the top are getting thicker. In an online community, an investor vomited in anger, saying, “I lost 800,000 won even though I only bought 5 shares.” Ecopro BM, a subsidiary of Ecopro, also plunged more than 17% on the day. The closing price for the day is 376,500 won. The previous day, it raised its high to 584,000 won during the intraday, but soon fell. Assuming you bought at the peak, your current loss is 35.5%.

Until the 25th, just before the plunge from the beginning of the year, Ecopro jumped 1155.3% and Ecopro BM jumped 401.6%. During this period, EcoPro’s rate of return was the highest in the KOSPI and KOSDAQ markets. This month, the upward trend has been particularly steep. From July 3 to 25 this year, Ecopro and Ecopro BM soared 71.5% and 85.5%, respectively.

However, the downward trend continued from the previous day. It is analyzed that the stock price soared due to foreign investors’ short covering following the liquidation of short selling, and stock price volatility increased as profit-taking sales poured in using the stock price rise as an opportunity. Short covering is when a short seller buys stocks to pay back borrowed stocks to reduce losses. There is also an analysis that the fall was more severe as the selling force of the so-called ‘danta’ family was added. From the beginning of July to this day, individuals net sold 1.0404 trillion won worth of EcoPro.

Choi Yu-joon, a researcher at Shinhan Investment & Securities, said, “‘Short squeeze (price surge due to large-scale short covering)’ led to ‘buying’ secondary batteries and ‘selling’ in the rest of the industry.” With the increase in market volatility, the amount estimated to be repaid on margin came out, and volatility caused volatility.”

The POSCO Group stock, which recently showed an upward rally and emerged as the second Eco-Pro Group stock, also continued to decline for two days from the previous day. For two trading days on the 26th and 27th, POSCO Holdings and POSCO Future M fell 9.7% and 18.7%, respectively. Posco International, which showed strength the previous day, fell more than 20% on the day.

Individuals’ reactions to the unusual volatility are divided into two categories: “As it is an industry with growth potential, it is an opportunity when it falls, so you should buy more” or “It may fall further, so you should stop losing money.” However, regarding this market trend, experts advised that the flow driven by supply and demand will only be short-lived and pay attention to stocks with solid fundamentals.

Na Jeong-hwan , a researcher at NH Investment & Securities, said, “In the past, there have been many experiences in which certain themes or stock groups that rose sharply due to supply and demand compared to fundamental improvements have ended in decline.” As the trend towards the stock market is resolved, it is expected that stock price volatility will ease.” “If the overall stock market declines significantly due to supply and demand deviation ,

it is good to use it as a buying opportunity,” he said . There is a possibility that the market will gradually move to a performance-oriented market,” he added.

Leave a Reply

Your email address will not be published. Required fields are marked *