KOSPI Stagnant, Trapped in a 'Box Range'... This Stock Surges 27% [Kim Geun-hee's Market Wrap-Up]

Due to the impact of high interest rates and high oil prices, the KOSPI was trapped in a box range in the 7th,000s. Meanwhile, the KOSDAQ rose by more than 5%. On the KOSPI, substrate stocks surged significantly, while biotech stocks ran on the KOSDAQ market.

According to Korea Exchange on the 3rd, the fortunes of the two domestic stock indices diverged during the first week of October (September 28 – October 2). The KOSPI recorded 7,003.74, down 77.18 points (1.09%) from the previous week's close (7,080.92). In contrast, the KOSDAQ showed 893.29, up 48.81 points (5.78%) from the previous week's close (844.48).

Despite Micron's strong earnings and a favorable trend in Korean exports centered on semiconductors, international oil prices breaking through $100 again and high interest rates dragged down the KOSPI index. Meanwhile, the KOSDAQ index rose on the strength of biotech stocks.

During this period, the stock with the largest gain on the KOSPI (based on a market capitalization of over 1 trillion won and weekly trading volume of over 100 billion won) was LS Specialty Chemical, which recorded a rise of 27.12%.

LS Specialty Chemical is a company engaged in precision chemicals and all-solid-state battery materials businesses. The stock price rose following reports that LS Specialty Chemical will begin producing lithium sulfide, a key raw material for all-solid-state batteries, starting next month. The cost reduction of lithium sulfide is considered a core variable in the growth of the all-solid-state battery industry.

Researcher Kim Myung-ju at Shinhan Investment Corp analyzed, "While the valuation burden relative to LS Specialty Chemical's earnings power is high," adding that "with its solid core business providing downside support, it is an attractive stock considering the first-mover advantage in the phase of expanding all-solid-state battery production capacity."

Substrate stocks such as Korea Circuit (change rate 26.57%), Daeduck Electronics (23.79%), and SKC (19.13%) ranked among the top gainers, driven by news of Samsung Electro-Mechanics' expansion. Samsung Electro-Mechanics disclosed on the 28th of last month that it would invest 4.27 trillion won in expanding its package substrate production facility at its domestic Sejong plant. It also announced that its Vietnamese production subsidiary would invest 2.51 trillion won in local package substrate equipment.

Expectations that Samsung Electro-Mechanics will increase its production capacity for "Flip Chip Ball Grid Array" (FC-BGA) semiconductor substrates for AI servers improved investor sentiment not only for Samsung Electro-Mechanics but also for other substrate stocks. In the first week of October, Samsung Electro-Mechanics rose by 4.91%.

Stock prices of solar-related companies such as Hanwha Solutions (23.63%) and OCI Holdings (14.81%) jumped on expectations of rising solar power prices in the United States.

On the KOSDAQ market, biotech stocks rose on news that HLB's cholangiocarcinoma treatment "Lipictu (generic name lirafugatinib)" received approval from the U.S. FDA (Food and Drug Administration).

Among KOSDAQ stocks (based on a market capitalization of over 300 billion won and weekly trading volume of over 10 billion won), the stock with the largest gain was Appclone, which rose by 42.35%. HLB Life Science (36.45%), GTG Bio (36.04%), HLB Pharma (35.27%), and HLB (32.41%) also surged.

HLB's U.S. subsidiary Eleva Therapeutics received FDA approval on the 23rd (local time) for Lipictu as a second-line treatment for adult patients with locally advanced or metastatic cholangiocarcinoma confirmed to have FGFR2 gene fusions or rearrangements. Cholangiocarcinoma is a rare cancer that occurs in the bile ducts, which are the passages through which bile produced by the liver travels.