SNS-praised stocks and local theme stocks without earnings surged
Last week, while the KOSPI and KOSDAQ fell, some theme stocks that drew funds not on the basis of earnings or order wins but on local ties or praise on social media surged. Trading value and volatility jumped for those stocks, increasing investment risk.
In a market where the KOSPI and KOSDAQ both fell last week, some theme stocks rose noticeably. They were stocks whose catalysts came not from concrete evidence such as earnings releases or order disclosures, but from local ties or flattering stories on social media.
Trading value rose sharply above normal levels, and cases were confirmed in which share prices jumped in a short period of time. Institutional and foreign trading was limited, and in many cases buying centered on individual investors formed the flow of funds.
Some stocks were grouped under the label '3mega beneficiary stocks,' drawing in additional buying. The labeling and the buzz were not linked to any actual change in operating performance.
Even on days when the overall stock market fell, the related theme stocks were observed moving in the opposite direction several times. As a result, volatility increased, and in some cases short-term profit-taking orders also emerged.
Questions were also raised regarding trading rules and disclosure obligations. Some investors asked that the source and basis of information be examined.
This phenomenon shows that regional ties and social media have a significant impact on investment sentiment. However, the trend did not accompany any change in corporate fundamentals.
Sources: 연합뉴스 경제
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