M&C Solution Plunges 7% After Four-Day Rally on Profit-Taking

M&C Solution (484870.KQ), a precision parts manufacturer for the defense industry, ended its four-day winning streak with a sharp decline on Friday as investors took profits following the recent surge.

As of 2:43 p.m. on January 10, M&C Solution shares were trading at 133,200 won, down 7.76% from the previous session, according to Korea Exchange data. The stock had climbed approximately 18% over the four trading days from January 4 to 9, rising from a closing price of 121,900 won on January 3 to 144,300 won at the previous session's close.

M&C Solution specializes in high-precision machined components used in aircraft and missile parts, with major domestic defense contractors as its clients. The stock had been boosted recently by expectations of benefiting from strong K-defense export performance.

Friday's sharp drop is attributed to profit-taking following the short-term overheating. Market observers noted that fatigue from the four consecutive days of gains had accumulated. The 7% decline brought the share price back to the low 133,000 won range, erasing a significant portion of the recent gains.

The company's largest shareholder is Socius Private Equity-Weltusi Investment, a private equity firm currently pursuing a sale of its controlling stake. However, the sale process has reportedly slowed as defense stocks have surged recently.

Other defense stocks also retreated on Friday. Hanwha Aerospace (012450.KS) was trading at 920,000 won, down 4.17% from the previous session, while LIG Nex1 (079550.KS) fell 1.29% to 383,500 won.