LG Ensol plunged for the second day… Individual investors ‘worried’
Stock direction ‘tactile’ to MSCI index inclusion
Customers are consulting with customers at the Shinhan Financial Investment Sales Department in Yeouido, Seoul on the 19th, the deadline for subscribing for public offering shares for general investors of LG Energy Solution. [이미지출처=연합뉴스]
[아시아경제 한승곤 기자] “It’s really frustrating.” , “I have a lot of quarrels with my acquaintances.”
Investors of LG Energy Solutions (LG Ensol), who made their splendid debut by placing second in the KOSPI based on market capitalization as soon as they went public, are sighing deeply. LG Ensol closed the trade at 450,000 won on the 28th, with a decline of 10.89%. This is because the public offering price (300,000 won) is still above the level, but it is showing a downward trend one after another after failing to be ‘dazzled’ (the upper limit after the opening price is formed at twice the public offering price).
As a result, there are various opinions surrounding LG Ensol among office workers. “The price is still above the public offering price,” said Kim, an individual investor, an office worker in his 30s. He added, “If this was the case, I would have just sold it right away,” he added.
On the other hand, there are long-term investment opinions. “I invested as an electric vehicle battery master,” said Park, an office worker in his 40s.
On the other hand, there are complaints that quarrels have increased due to the drop in LG Ensol’s share price. An office worker in his late 20s, Choi, said, “I was expecting something different from LG Ensol, but it failed.”
On the afternoon of the 28th, the closing price of the KOSPI is displayed in the dealing room of Hana Bank’s main branch in Eulji-ro, Jung-gu, Seoul. On this day, the KOSPI finished at 2,663.34, up 48.85 points (1.87%) from the battlefield. [이미지출처=연합뉴스]
In relation to this, there is also a study that shows that if you focus too much on profit and loss related to stock investment, you can practically not perform your daily life properly. According to the Korea Gambling Management Center in March of last year, as of 2020, there were 5,523 consultations on stock addiction, up 56% from 3,540 the previous year. Most of the time, they borrowed money and invested in stocks, but they lost money and asked for help because it was difficult for their family as well.
Meanwhile, LG Ensol’s share price has been on a downward trend every day, but there are also good things. LG Ensol met the overall market cap and floating market cap criteria for early incorporation into the MSCI (Morgan Stanley Capital International) index.
According to the financial investment industry on the 28th, MSCI confirmed and announced LG Ensol’s early inclusion in the emerging market index after the market close on the 27th. The MSCI index is directly related to foreign capital. If it is included in the MSCI index, passive capital inflows can be expected for each stock, and the stock price is likely to rise in the future.
However, the target price of each securities company is different. The target price of Meritz Securities stood at KRW 610,000, the highest among securities firms. On the other hand, Yuanta Securities predicted that it would drop to 390,000 won. The target stock price of Korea Investment & Securities was 600,000 won, Eugene Investment & Securities 520,000 won, Samsung Securities 440,000 won, SK Securities 430,000 won, and NH Investment & Securities 430,000 won.
Previously, LG Ensol was listed on the KOSPI on the 27th. The previous day’s opening price was set at 597,000 won, up 99% from the public offering price (300,000 won). On the first day of listing, the stock price of LG Ensol fluctuated due to foreign selling, and at one point during the day, it fell 24.62% from the opening price to 450,000 won and then rose to 598,000 won.
Reporter Seung-gon Han hsg@asiae.co.kr
