Monami and Hansung Enterprise led sharp declines among small-cap Korean stocks on the morning of the 21st, following a recent surge driven by 'patriotic buying' sentiment. At 9:18 AM on the Korea Exchange, stationery company Monami hit the daily lower limit at 2,615 won, down 1,115 won or 29.89% from the previous trading day. Hansung Enterprise, known for its crab stick product 'Crabmi,' fell 1,250 won or 12.29% to 8,920 won, while apparel company Vivien and furniture maker Ennex also entered steep decline territory with losses exceeding 20%. The pullback follows short-term overheating in stocks that had surged after gaining attention through national veteran support campaigns and domestic product purchase movements. The Korea Exchange recently raised market capitalization thresholds for stock retention in the second half, setting the lower limits at 30 billion won for KOSPI stocks and 20 billion won for KOSDAQ stocks, triggering heightened volatility among small-cap stocks facing potential delisting.
Monami Hits Lower Limit as Small-Cap Stocks Decline Sharply
At 9:18 AM on the 21st, Monami traded at the lower limit of 2,615 won on the Korea Exchange, representing a 1,115 won or 29.89% decline from the previous trading day. Hansung Enterprise dropped 1,250 won or 12.29% to 8,920 won. Apparel company Vivien and furniture company Ennex expanded their decline rates to over 20%, entering sharp downward movements. The declines represent a reversal from recent gains driven by retail investor participation in 'patriotic buying' themes.
Korea Exchange Raises Delisting Thresholds for Second Half
The Korea Exchange raised the market capitalization lower limits for stock retention in the second half to 30 billion won for KOSPI stocks and 20 billion won for KOSDAQ stocks. The exchange initiated procedures to designate stocks falling below these thresholds as management issues and proceed with delisting processes. The threshold changes triggered expanded price volatility among small-cap stocks facing delisting risks, with some stocks experiencing sudden surges after gaining renewed attention through national veteran support initiatives and domestic product purchase campaigns.
Experts Cite Weak Fundamentals in ESG Ratings
Experts point to risks in chasing momentum in these stocks. Analysts note that companies with weak performance and governance structures show low sustainability in share price increases. In the Korea ESG Standards evaluation, Monami, Ennex, and Vivien received D grades, while Hansung Enterprise received a B grade.
FAQ
What happened to Monami stocks on the 21st?
Monami hit the daily lower limit at 2,615 won on the morning of the 21st, down 1,115 won or 29.89% from the previous trading day at 9:18 AM on the Korea Exchange.
Why did small-cap Korean stocks decline sharply?
The declines followed short-term overheating in stocks that had surged through 'patriotic buying' sentiment related to national veteran support campaigns and domestic product purchase movements, with price reversals occurring as the momentum cooled.
What are the new Korea Exchange delisting thresholds?
The Korea Exchange raised market capitalization lower limits for the second half to 30 billion won for KOSPI stocks and 20 billion won for KOSDAQ stocks, with stocks below these thresholds subject to management designation and delisting procedures.
