Rate jitters, controversies, weak earnings deepen slump in Korea's biotech stocks

While the benchmark KOSPI has surged to fresh highs over the past month, powered by a semiconductor-led rally, biotech shares on the secondary Kosdaq bourse largely continue to struggle to regain momentum, industry officials said Tuesday. Investor sentiment surrounding Korean biotech stocks appears to have weakened amid a combination of renewed rate jitters, sector-specific controversies and lackluster earnings. The contrast has become increasingly stark in recent trading sessions, with many of the Kosdaq’s heavyweight biotech names lagging behind the broader market rebound. Sam Chun Dang Pharm, once the bourse’s largest company by market capitalization, closed at 365,500 won ($242), Tuesday, down 2.14 percent from the previous session, according to the Korea Exchange. Other major stocks including ABL Bio, PharmaResearch, LigaChem Biosciences, Oscotec and HLB also traded lower. Market watchers note that one of the biggest pressures weighing on the sector is the growing expectation that global interest rates could remain elevated for longer due to persistent inflation and oil-price pr

Original source: Korea Times