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[Alpha Biz=(Chicago) Reporter Kim Jisun] Foreign investors continue to flock to Ecopro, whose stock price has risen more than 1 million won.
Foreigners' net purchases of Ecopro this month were the highest ever on a monthly basis. This is due to the so-called 'short squeeze' and the expectation of inclusion in the Morgan Stanley Capital International (MSCI) index to minimize the loss of short selling.
According to the Korea Exchange today (23rd), foreigners bought 552.8 billion won worth of Ecopro shares on the KOSDAQ market until the 21st of this month. The figure is seven times the total net purchase of 78.9 billion won last month.
It is the largest monthly net purchase since its listing in 2007.
First of all, this buying trend is attributed to short squeezes.
Short squeeze refers to a short-selling investor who borrows stocks in anticipation of a fall in stock prices and sells them in advance to prevent further losses if the stock price rises.
On the other hand, expectations for Ecopro's inclusion in the August MSCI Korea Index also worked.
Kim Dong-young, a researcher at Samsung Securities, predicted that Ecopro's MSCI index would be 100% based on stock prices on the 18∼20th.
However, some are wary that Ecopro's stock price could soon turn weak.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
