Battery More Expensive Than Complete Cars... Ecopro Surpasses Even Hyundai Motor
Ecopro Surpasses 1.32 Million Won Intraday
EcoPro, the second-largest company on the KOSDAQ market by market capitalization, soared more than 10% on the 25th, reaching the 1.32 million KRW range during the session.
EcoPro has maintained an upward trend for three consecutive days. On this day, it closed at 1,293,000 KRW, up 11.37% from the previous day’s closing price. During the session, it even surged to 1,321,000 KRW, setting a new record high.
EcoPro BM, a key affiliate and the largest by market capitalization on the KOSDAQ, is also hitting all-time highs. It closed at 462,000 KRW, up 14.22% from the previous day. EcoPro BM’s market capitalization stands at 45.1842 trillion KRW, surpassing Hyundai Motor Company (42.4121 trillion KRW), which ranks 9th in total market capitalization on the KOSPI market.
EcoPro’s market capitalization also reached 34.4296 trillion KRW, overtaking Kia (34.0129 trillion KRW), ranked 10th overall, and NAVER (32.9739 trillion KRW), ranked 11th.
The strength of these stocks on this day appears to be driven by expectations that EcoPro may be included in the Morgan Stanley Capital International (MSCI) Korea Index. Domestic securities firms currently forecast that EcoPro will be included in the MSCI Korea Index, which is scheduled to be announced next month.
Since the MSCI Korea Index is a stock index developed by the global investment bank Morgan Stanley, inclusion of EcoPro in the MSCI Korea Index could lead to additional inflows of global fund capital.
The so-called "short squeeze" is also cited as a factor behind the upward trend. A short squeeze refers to a phenomenon where investors who have short-sold stocks expecting a price decline are forced to buy back shares to cover losses when the stock price rises contrary to their expectations.
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Foreign investors, who had been betting on a decline in the EcoPro Group, have recently started purchasing shares. As of July, foreign investors have net bought approximately 613.9 billion KRW worth of EcoPro shares.
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