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.
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data
Singapore shares open lower on Friday; STI down 0.1%
Stocks to watch: CLI, Great Eastern, MIT, Sheng Siong, iFast, OUE, Far East Orchard
Europe: Stocks retreat on earnings gloom, weak US economic data
US: Stocks hit by GDP data, Meta results