The number of brokerage reports on KOSDAQ-listed companies has doubled in five months, data showed. Interest in the KOSDAQ market is reviving as the government has encouraged brokerages to expand corporate analysis reports as part of its KOSDAQ stimulus policy, while supply-demand conditions have recently improved.
According to FnGuide on Sunday, the number of brokerage reports on KOSDAQ-listed companies totaled 734 last month. That marks a more than twofold increase in five months, compared with 364 in December last year.
Since the government called for expanding KOSDAQ report publications in December last year, the number has shown a steady upward trend. It rose to 442 in January, 505 in February, 482 in March, 612 in April, and 734 in May. In particular, while the number of KOSPI reports declined from 2,104 to 1,825 between April and May, KOSDAQ reports increased from 612 to 734 over the same period, presenting a contrast.
The KOSDAQ stocks with the most reports published this year were concentrated in the entertainment, bio, and secondary battery sectors. SM Entertainment (041510) topped the list with 60 reports, followed by YG Entertainment (122870) with 57 and JYP Entertainment with 51. Ecopro BM (247540) also drew 51 reports, while interest was also high in bio and aesthetic medical device companies such as Pharmaresearch (48) and Classys (43).
Still, observers point out that the research blind spot remains wide across the broader market. Only 507 KOSDAQ companies had at least one brokerage report published this year, accounting for just 29.2% of the total 1,736 listed companies. The remaining 1,229 companies (70.8%) had no reports at all.
The absolute volume of report publications also showed a large gap with the KOSPI. This year, reports on Samsung Electronics (005930) reached 166, followed by Hyundai Motor (005380) with 134, SK hynix (000660) with 127, Kia (000270) with 122, and Hyundai Mobis (012330) with 110.
The market expects interest in the KOSDAQ to gradually expand. This is because the supply-demand landscape is shifting, with foreign investors recently taking profits centered on large-cap KOSPI stocks while maintaining a net buying stance on the KOSDAQ. In addition, investor sentiment is improving as about 10 trillion won of the 150 trillion won National Growth Fund launched this year is expected to flow into the KOSDAQ market.
However, analysts say further improvements in conditions are needed for this to lead to a broad uptrend in the KOSDAQ. "KOSDAQ-listed companies are relatively passive in holding investor relations (IR) sessions for analysts or providing information," a financial investment industry official said. "For overall market interest to revive, top market-cap bio stocks need to meet favorable conditions such as rate cuts, and the KOSDAQ promotion-relegation system also needs to settle stably into the market."
