COVID test kit maker Seegene ranks hottest stock in Korea with daily turnover at over $2 bn

Korean COVID-19 sampling kit maker Seegene Inc. has become the hottest stock in Korea, topping in terms of daily turnover in both main and secondary markets on Friday amid surge in overseas orders for test kits.

According to the nation’s sole stock exchange operator Korea Exchange on Sunday, trade turnover of the Kosdaq-listed Seegene totaled 2.48 trillion won ($2.02 billion) on March 27, the highest among entire listed companies. The figure for Samsung Electronics that holds the largest market cap in the country reached 1.93 trillion won.

The point-of-care diagnostic company accounted for 9.03 percent of the entire trading volume on the Kospi and Kosdaq market at 27.43 trillion won, which also marked the highest on record.

The company saw its stock price soar a whopping 273.27 percent from January 20 when the country reported the first case of coronavirus infection to March 27.

Its market cap has increased 3.7 times over the period, ascending to No.3 rank on the Kosdaq market from the 41st.

South Korean President Moon Jae-in looks at a COVID-19 diagnostic reagent during a visit to Seegene Inc. in Seoul on Mar. 25, 2020. [Photo by Yonhap]

Most of the gain was driven by retail investors who net purchased 266.1 billion won, contrary to foreign investors and institutional investors who net sold 151.1 billion won and 105.5 billion won during the period.

Seegene CEO Chun Jong-yoon said the company exports 95 percent of the COVID-19 test kits, and recently the Los Angeles City Council and LA County announced that they will buy 20,000 units of the kit at $1.25 million.

Some analysts, however, urged investors to exercise caution and make more prudent investment decision based on the company’s earnings records.

On Monday, shares of Seegene rose 4.4 percent to close at 121,000 won.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]