In the past 3 weeks, Samsung Electronics, NC, LG Chem, etc. are in the top short selling positions.
[천지일보=김현진 기자] Naver and Kakao plunged sharply amid concerns about regulations from the government and the ruling party. In particular, Kakao has been the target of a short selling attack as it has the highest short selling trading value among domestic stocks over the past week.
According to the Korea Exchange on the 12th, the amount of short selling of Kakao from the 6th to the 10th was 259.4 billion won, the highest among companies listed on the KOSPI and KOSDAQ markets. This is a whopping 807% increase compared to the previous week (August 30-September 3, 28.6 billion won).
In particular, 175.9 billion won was traded on the 8th, recording the largest amount of daily short selling of a stock since short selling resumed in May. Kakao was designated as an overheated short-selling item, and short-selling was banned for one day, the next day, the 9th.
Recently, as financial authorities, the Fair Trade Commission, and political circles raised the need for regulation on large online platforms one after another, the stock price of Kakao plunged. It is interpreted that investors also increased short selling of Kakao. Short selling is an investment technique that seeks to make a profit by selling stocks first and then buying them later.
As for the regulations of Kakao and Naver, it is pointed out that in the era of the 4th industrial revolution, they go against the global trend and may fall behind in related industries. Kim Dae-jong, a professor of business administration at Sejong University, said in an interview with the Cheonji Ilbo, “Currently, Korea is at a crossroads between leading the 4th industrial revolution or falling behind again. As a leading country leading the 4th industrial revolution, we have the best environment in the world. However, if the regulatory blades are pushed against Korea’s leading platform innovators such as Naver and Kakao on the grounds that they have to protect the alleyways and protect the existing industries, they will inevitably fall behind in the world flow.” “The government should further nurture platform companies that represent Korea, remove regulations on platform companies, choose policies that coexist with existing industries, and create a good country to do business with,” he said.
Samsung Electronics (343.6 billion won), Kakao (329.2 billion won), NCsoft (291.4 billion won), and LG Chem (251.8 billion won) rose to the top of the list of short selling transactions over the past three weeks. Kakao, NCsoft, and LG Chem are large-cap stocks whose stock prices have recently weakened due to individual issues.
In the case of NCsoft during this period, as the sluggishness of the new ‘Blade & Soul 2’ is expected to have a significant impact on future performance and corporate value, the proportion of short selling to the total trading volume was 6.7%, compared to Samsung Electronics (1.9%). , Kakao (3.5%) and LG Chem (4.1%). Securities companies are also lowering NCsoft’s target price one after another.
Kakao Bank and Krafton, which were added to the KOSPI 200 as an exception on the 10th, ranked first and second in the stock market with the most short-selling transactions. On the same day, Kakao Bank’s short selling transaction amounted to 162.4 billion won and Krafton’s 17.8 billion won, respectively, and the proportion of short selling to the total transaction amount was 34.74% and 28.63%, respectively. In terms of trading weight, Kakao Bank ranked first and Krafton the third largest among stocks.
In this regard, as Kakao Bank and Krafton became possible to short sell after being incorporated into the KOSPI 200, there is an analysis that it is necessary to be careful about short selling related to long-short strategies. A long-short strategy refers to an investment that hedges by taking long and short positions in different stocks at the same time, such as buying undervalued stocks and short selling overvalued stocks.
It is expected that Kakao Bank and Krafton’s valuations are higher than those of other similar companies, so these companies may be subject to short selling.
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