327 out of the 1,002 KOSDAQ-listed firms showed a price fluctuation rate of over 100% compared to their top prices this year.
With the KOSDAQ having dipped below the 500 point mark, an increasing number of the companies listed on it are showing greater stock price fluctuations than before. More than half of them have fallen to the floor from this year’s highest.
According to the Financial Supervisory Service’s Data Analysis, Retrieval and Transfer System (DART) and financial information provider FnGuide, 327 out of the 1,002 KOSDAQ-listed firms showed a price fluctuation rate of over 100% compared to their top prices. Besides, many of them were found to have hit the lowest for the year.
The majority of such companies have been riddled with rumor-based investment, recapitalization failure, litigation, embezzlement, misappropriation by top management, and deteriorating sales. The largest shareholders sold their stocks right after some gains, but the investors were prone to losses.
“Imprudent investment in the KOSDAQ market, where no momentum is found for now, based on rumors, is something very risky,” said an industry insider, adding, “The items in question are particularly so, since the prices shoot up and plummet just in the blink of an eye.”