July 14, 2022 Korea's upper limit stocks

On July 14, three KOSDAQ stocks hit the upper limit in the local stock market. There were no upper/lower stocks among KOSPI stocks, and one stock hit the lower limit on the KOSDAQ. On the KOSDAQ market, Jokwang ILI rose 640 won (+29.98%) to 2,775 won, KT Alpha rose 1,560 won (+29.89%) to 6,780 won, siliconii rose 1,215 won (+29.82%) to 5,290 won, and 09women closed at 19,150 won, down 8,200 won (29.98%) from the previous trading day.

[Upper limit stocks on the KOSDAQ Market]

Jokwang ILI : KRW 2,775 (▲640, +29.98%)
Jokwang ILI hit the upper limit on the 14th due to the optical illusion of a free capital increase. Jogwang ILI, which previously decided to increase its capital increase by five weeks per share, suffered a violation of its rights on the same day. The right to take over new shares will be lost after the standard date for allocating new shares, and the initial price will be artificially lowered according to a certain standard to meet equity between existing and new shareholders. If the right to free capital increase occurs, there is no change in corporate value or growth, but as stock prices are significantly lower than usual, there is an optical illusion that corporate value seems to be undervalued, attracting buying.

 

KT Alpha: KRW 6,780 (▲1,560, +29.89%)
Related stocks are on the rise in the "Weird Lawyer Woo Young-woo" syndrome. KT Alpha is a media commerce integrated platform company that plans and operates video on demand (VOD) services for digital content distribution business and KT's online video service (OTT) platform, seezn.

The ENA channel, which is airing "Strange Lawyer Woo Young-woo," is operated by KT's satellite broadcasting subsidiary SkyLife TV. In addition, "Weird lawyer Woo Young-woo was co-produced by KT Studio Genie, a holding company in the middle of KT's content business, with Acetory and Nangmanaru." As a result, KT Alpha, which is distributing contents among KT's affiliates, seems to be drawing keen attention.

"Weird Lawyer Woo Young-woo" started with 0.9% (based on Nielsen Korea nationwide) on the first broadcast on the 29th of last month, recording 1.8% in the second, 4.0% in the third, and 5.2% in the fourth. In the fifth episode, which aired the previous day, it achieved 9.1%, nearly double the previous episode, and is on the verge of 10%. The highest viewer rating per minute exceeded 11.7 percent. It is also popular overseas. On the "Global Top 10" chart compiled and released by Netflix, it topped the non-English TV category with 23.95 million viewing hours from the 4th to the 10th.

 

Silicone ii: KRW 5,290 (▲1,215, +29.82%)
At the beginning of the market, Silicon Investment soared to the upper limit due to the effect of a free capital increase. On the previous day, the Korea Exchange announced that Silicon 2 would be subject to a free capital increase. A free capital increase refers to accounting for capital surplus as a capital account and distributing stocks free of charge to existing shareholders. Instead of increasing the number of shares, the stock price decreases. When a free capital increase is implemented, the right to participate in the free capital increase disappears in time for the allocation date of new shares. After the occurrence of the right, even if you buy stocks, you cannot receive new shares with a free capital increase.

[Lower limit stocks on the KOSDAQ Market]

09women: KRW 19,150 (▼8,200, -29.98%)
09Women, which was listed on March 23 this year, reached its lowest price of 4,847 won on May 12, but its stock price soared more than 11 times in two months, renewing its highest price to 54,500 won. However, 09Women, which continued its sharp decline from the 6th of this month, closed at 19,150 won, down 29.98 percent from the previous trading day on the 14th.

The reason why 09Women experienced a surge is because of the free capital increase. A free capital increase means distributing new stocks to shareholders without consideration. There is no change in corporate value, but it has the effect of looking cheap, creating an effect that seems to be undervalued. It is a common phenomenon that the stock price is undervalued and the buying trend increases. This effect is also often referred to as the "free capital increase illusion effect."

Thanks to the free capital increase, 09Women, which recently hit the upper limit more than five times, is believed to have plunged due to high-point selling. 09Women were also designated as investment risk items on the 1st.