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Hanjin Shipping shares soar a day after exchange calls stock 'trash'
[SEOUL] One day after a Korean stock exchange official called the shares of Hanjin Shipping Co "trash", investors piled in, sending them 15 per cent higher.
The company, on the verge of bankruptcy, is a darling of retail investors. Volatility is reaching a record, while the stock was the most-traded on the Kospi index in the past two days.
"Retail investors are buying the stock so they can make double-digit profits - 10 per cent or 20 per cent a day," said Kim Seung Churl, an analyst at Meritz Securities in Seoul.
"The volatility for this kind of company is really high."
Foreign investors sold a net 2 billion won (S$2.44 million) of Hanjin Shipping's shares since Jan 9, while individual investors bought a net 1.9 billion won worth during the period, according to data from the Korean stock exchange.