Bio firm HLB leading Kosdaq’s bullish run
The massive surge in share price of biotech company Hyundai Life Boat (HLB) is leading the secondary Kosdaq’s bull market. Now, investors are focused on whether the firm’s stock will continue the current uptrend until the end of the year.
According to the Korea Exchange (KRX), the share price of HLB has jumped about 300 percent over the past month. The bio firm’s market capitalization surpassed Celltrion Healthcare’s figure during intraday trading, Tuesday, topping Kosdaq-listed firms.
The market value of Celltrion Healthcare had led the Kosdaq for about a year and nine months before then.
The share price of HLB closed at 180,800 won ($154), Tuesday, up 7.75 percent from the previous session. It hit its new 52-week high during the Tuesday session after jumping 29.98 percent the previous day.
The biotech firm has become the second most valuable stock on the Kosdaq with a market capitalization of 7.09 trillion won.
The financial authorities suspended trading of HLB’s stock Wednesday to offset a sudden 40 percent jump during the Monday and Tuesday sessions.
Investors believe the firm’s share price still has room to move further up.
“HLB is scheduled to have a pre-new drug application meeting for its anticancer drug Rivoceranib
with the U.S. Food and Drug Administration on Friday,” HLB announced earlier this week.
Following HLB’s advance, the share prices of other bio firms have also enjoyed an uptrend this month.
Share prices of SillaJen and Samsung BioLogics were up 82.94 percent and 15.33 percent, respectively, this month. Celltrion Healthcare’s share price has also climbed 13.26 percent.
The current uptrend of the Kosdaq-listed bio firms is in a stark contrast to their sluggish stock prices in August.
On Aug. 5, the KRX issued a five-minute “sidecar” on the Kosdaq for the first time since 2016 due to Investors’ massive sell-off. A series of clinical failures reported by major Kosdaq-listed bio firms was the reason behind Kosdaq’s crash on the day.
Experts called for a cautious approach to the Kosdaq-listed bio firms.
“The current bull market looks a bit groundless,” said Mirae Asset Daewoo analyst Kim Tae-hee. “A number of investors borrowed money to invest in HLB and other bio shares. This could be a risk factor.”
Other analysts expressed reservations about HLB shares.
“The current uptrend is clearly abnormal. It’s true foreign investors massively bought HLB shares this week, but institutional investors are still taking a wait-and-see approach. They could short it if it fails to get approval from the U.S. authorities,” another analyst said on condition of anonymity.