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| Employees monitor the KOSPI index at the Korea Exchange in Yeouido, Seoul, Monday. The main bourse closed at a record high of 2,292.76, up 2.3 percent from the previous trading day. / Yonhap |
Candidates-related shares remain weak
By Lee Min-hyung
The benchmark KOSPI set a new high, Monday, on a bullish buying spree by foreign investors ahead of the presidential election on Tuesday.
The main bourse closed at 2,292.76, up 2.3 percent or 51.52 points, hitting a record for two consecutive trading days since Thursday.
Shares of Samsung Electronics, which led the robust rally, also reached an all-time high at 2.351 million won ($2,235.87), up 75,000 won or 3.3 percent.
Trade volume was moderate at 277 million shares worth 6.5 trillion won. Gainers outnumbered losers 556 to 235.
The Seoul bourse got off to a good start on hopes that the new government would come up with generous economic stimulus packages after hitting a record high last week.
Last Thursday, the latest trading session, the KOSPI gained about 1 percent to close at 2,241.24 points, thanks to foreign buying and healthier corporate earnings.
Political theme stocks
Ahead of the election, shares related to presidential candidates remained weak. In particular, they have fluctuated greatly in recent months.
The stock price of AhnLab has particularly nosedived, as its founder and presidential-hopeful Ahn Cheol-soo of the People's Party declines in popularity ahead of the election.
As of the last trading day, Thursday, stocks of the nation's leading security software company closed at 59,900 won, down 59.8 percent from 149,000 won on March 31.
The steep downfall is in line with weakening public support for Ahn in recent weeks.
Ahn's support rating was neck-and-neck with dominant candidate Moon Jae-in of the Democratic Party of Korea when the stock value was on an upward trajectory, which lasted for a few weeks from late March.
The entrepreneur-turned-politician, however, began to lose the trust of the public after failing to leave any strong impression on a series of televised presidential debates with other candidates.
"Ahn's weakening support is due to the rise of rival candidate Hong Joon-pyo of the Liberty Korea Party," Rep. Lee Yong-joo of the People's Party said in a recent media interview.
In the fifth presidential debate on April 28, Hong questioned Ahn over why the company's stock value is weakening, but he declined to comment by saying: "I have no idea."
Due to his aggressive speaking tactics, Hong has risen as the second-most influential candidate, along with Ahn. On the other hand, Ahn is considered to have failed to promote himself with any outstanding campaign pledges or public appearances.
AhnLab, however, is not the only company hit hard by the upcoming presidential race. Moon Jae-in themed stocks — including Wooridul Pharmaceutical and film production company Barunson — have also fluctuated in recent weeks.
Barunson's share price has almost halved to close at 6,200 won on Thursday, down 44.88 percent from March 6. The fluctuation is attributable to swirling rumors that the company has something to do with the leading presidential candidate. In March, the company denied in a regulatory filing its relationship with Moon.
AhnLab closed Monday at 58,700 won, down 2 percent or 1,200 won, from the previous trading day, on the Seoul bourse, with Barunson down 0.48 percent to close at 6,170 won.
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