The battle for the No. 1 spot by market capitalization on the KOSDAQ is fierce. Early this year, after Alteogen lost investors' confidence and surrendered the top spot, the leader has changed depending on issues at individual stocks. Most recently, Sam Chun Dang Pharm took No. 1 after overtaking EcoPro group stocks, but as it reeled from the controlling shareholder's equity sale and other issues and the share price plunged, it yielded the top spot again.
On the main bourse, Samsung Electronics is firmly defending its No. 1 position, a markedly different situation.
As of the 7th, the No. 1 stock by market cap on the KOSDAQ was EcoPro BM. EcoPro at one point during the session rose to No. 1 that day but then gave up the spot again. The race for the top by market cap is intense.
As of the 7th, EcoPro BM's market cap was 19.698 trillion won (excluding treasury shares). It was followed closely by EcoPro (19.459 trillion won) and Alteogen (18.943 trillion won). With a gap of about 200 billion to 500 billion won, the rankings are being decided at the margins.
EcoPro BM, following the previous day (the 6th), defended the No. 1 KOSDAQ market-cap spot for a second straight day, but as recently as on the 3rd, the No. 1 by market cap was Alteogen.
The competition for the top market-cap spot on the KOSDAQ intensified as Alteogen's stock, which had firmly held No. 1 until early this year, plunged. At the start of the year (Jan. 2), Alteogen's market cap was 24.441 trillion won, far ahead of second-place EcoPro BM (13.848 trillion won).
But on Jan. 21, news that the sales royalty rate for the subcutaneous Keytruda (SC) formulation—technology that Alteogen transferred to Merck—was around 2%, lower than the securities industry's expectation of 4% to 5%, sent the stock tumbling. Since then, Alteogen's market cap has shrunk by more than 5 trillion won and has struggled to recover.
The market-cap gaps among the remaining stocks are not large either. When share prices surge or plunge over a few days, the rankings can swing sharply.
A prime example is Sam Chun Dang Pharm. Sam Chun Dang Pharm, which had been around No. 4 by market cap, vaulted to No. 1 as expectations grew for the export of technology related to a copycat oral obesity drug under development. As the stock soared, its market cap jumped from 18.49 trillion won to 21.095 trillion won in one leap.
Sam Chun Dang Pharm first took the No. 1 market-cap spot on the 21st of last month and held it for eight trading days, but as questions arose over the credibility of the contract, it fell back to fourth place.
In particular, repeated flare-ups of credibility issues with biotech stocks leading the KOSDAQ often sent share prices on a roller coaster. On top of that, as secondary-battery stocks rebounded, EcoPro BM and EcoPro are also cementing their spots in the upper ranks.
Lee Sang-heon, Director General at iM Securities' research center, said, "Compared with the KOSPI rally at the end of last year and into early this year, the KOSDAQ was relatively neglected," adding, "In the case of the KOSPI, market-cap rankings change in line with shifts in industry trends, but on the KOSDAQ, because market caps are smaller, rankings change frequently with price volatility."