“Politics-themed moon is back.” “Is it okay if I join the political theme list?”This month,
[ad_1]
“Politics-themed moon is back.” “Is it okay if I join the political theme list?”
This month, stories related to political theme stocks can be found in various stock-related communities. As the general election of the National Assembly approaches in April, political theme stocks are fluctuating again in the stock market. Investors are required to pay special attention as they often plunge suddenly even after a scary rise.
As of 11:30 a.m. on the 28th, Hwacheon Machinery is trading at 6,080 won, down 620 won (9.25%) from the previous day.
Hwacheon Machinery rose to KRW 9,700 during the day on the 22nd, rewriting a new 52-week high.
However, following a 23.69% drop on the previous day, the company is rapidly returning its gains as it also showed a big drop on the same day. Considering that the closing price of the previous day is 6,700 won, 30.92% is missing from the high point.
Hwacheon Machinery is a company that produces and sells machine tools such as large wind turbines, but it has recently attracted more attention as a “country-related stock” among investors. This is because Nam Kwang, former auditor of Hwacheon Machinery, is an alumnus of UC Berkeley Law School with Cho Kuk, chairman of the Cho Kuk Innovation Party. CEO Cho Kuk drew the line on his Facebook page last year, saying, “My family and I have nothing to do with the ‘Hwacheon machine’, but we are still tied to related stocks.
The recent sharp decline in Hwacheon Machinery’s stock price is attributed to the announcement by Hwacheon Machinery Chairman Kwon Young-yeol that he sold all 508,540 shares he owned on the market for two days on the 19th and 20th. Usually, the sale of stakes by major shareholders is considered a sign of the high point of stock prices, which is likely to lead to a decline in stock prices.
It is not the first time in a day or two that the stock price of political theme stocks has risen significantly, not just by selling shares of major shareholders. This is because the theme stocks related to Lee Jae-myung, head of the Democratic Party of Korea, Dongshin Geolseol, A-tech, and Han Dong-hoon, head of the emergency committee, Raemongraein, and Deoksung, have repeatedly fluctuated.
Dongshin Construction Co., which is headquartered in Andong, Gyeongsangbuk-do, CEO Lee Jae-myung’s hometown, rose to 31,850 won during the day on the 25th, but as of 11:30 a.m., it was traded at 26,450 won, down 2,550 won (8.79%) from the previous day.
Raemongraein also rose to 24,400 won during the day on the 14th and was pushed back to the 14,000 won level. Wythe Planet, where actor Lee Jung-jae is the largest shareholder, recently became a shareholder of Laemongrain through a paid-in capital increase. In November last year, a photo of Lee Jung-jae and then Minister of Justice Han Dong-hoon having a dinner was released, and Raemongraein was grouped into Han Dong-hoon’s theme stock.
Meanwhile, the Financial Supervisory Service operates a period of intensive reporting on unfair trade practices related to political theme stocks until April 10 and conducts special crackdowns. Regardless of the company’s performance, it is pointed out that the investment risk is high because it is often classified as a theme stock based on simple personal relationships such as school ties and delays of politicians or without a reasonable basis.
The Financial Supervisory Service said, “In the case of stocks whose stock prices have soared without any special reason, it can cause investment losses due to great volatility, and it is difficult to predict stock prices, so we should be cautious about investing.”
[ad_2]
Read More: “Politics-themed moon is back.” “Is it okay if I join the political theme list?”This month,