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Short sellers target KOSDAQ's two high flyers

Nov. 23, 2017 - 09:41 By Yonhap

Biopharmaceutical firm Celltrion Inc. and biotech company SillaJen Inc. have been the main targets of short sellers on the secondary KOSDAQ market this month after leading the market's recent red-hot run, industry sources said Thursday.

The volume of short-sold Celltrion shares came to 3.39 million shares in the first 21 days of this month, the largest among companies registered on the tech-laden stock market.

The figure accounts for slightly over 10 percent of the total amount of short-sold shares on the minor bourse during the cited period.

The Celltrion headquarters in Songdo, Incheon (Yonhap)

SillaJen ranked second with 1.53 million shares, trailing CMG Pharm Co. with 1.61 million. CMG's share price has almost doubled this month alone.

Short selling refers to the sale of borrowed shares in the hope of making a profit from a price fall by buying back at a lower price.

Powered by earnings momentum, the KOSDAQ market has been on a tear this month, with its price index soaring nearly 14 percent over the cited period. But the index ended down 1.07 percent at 780.90 on profit-taking Wednesday. Top-cap Celltrion fell 3.2 percent, while SillaJen tumbled 13.4 percent.

Analysts said some short sellers of Celltrion and SillaJen shares are believed to have reaped the profit from their declines the previous day. (Yonhap)