Top shorted South Korean stocks on the Kospi and Kosdaq led the downfall in the key Korean indices that had been battered over the last month.
From June 4 to July 4, the top 10 most shorted Kospi stocks tumbled 21.78 percent and Kosdaq’s 21.14 percent on average, according to the country`s sole stock market operator Korea Exchange on Tuesday. During the same period, the Kospi fell 13.87 percent and the Kosdaq 18.93 percent.
Of total 67 stocks on the Kospi with short positions exceeding 10 percent of turnover, 91 percent or 61 stocks plunged in a month, while all Kosdaq stocks with shorting above 10 percent were defeated.
Most heavily shorted stock was Netmarble, with shorting taking up 27.91 percent of its trade turnover over the recent month. Its shares lost 17.13 percent over the cited period even as the company is scheduled to launch a new game in late July.
Other heavily shorted stocks were cosmetics giant Amorepacific (24.8 percent), rechargeable battery leader LG Energy Solution (24.11 percent), travel agency Hanatour (21.83 percent), and battery material maker SK IE Technology (21.77 percent).
Over the same period, shares of Amorepacific lost 23.12 percent, LG Energy Solution 18.63 percent, and SK IE Technology 29.47 percent.
Short selling in Korea is allowed only on the top 200 Kospi and 150 Kosdaq stocks.
By Kang Min-woo and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
Read More: Top 10 shorted stocks lose 20% to drive Kospi, Kosdaq freefall in June – Pulse by Maeil