SEOUL, May 14 (Korea Bizwire) – Penny stocks have been losers on South Korea’s main bourse this year, while stocks with higher prices have tended to be more profitable, data showed Sunday.
According to the main bourse operator Korea Exchange, 19 stocks with a price tag below 1,000 won (US$0.89) posted a loss of 4.04 percent on average this year until Friday.
In contrast, four stocks with price tags hovering above 1 million won, including market behemoth Samsung Electronics Co., posted an average profit of 15.07 percent over the cited period.
Samsung Electronics saw its share jump 27.14 percent this year, while Lotte Chilsung Beverage Co. also increased 21.03 percent.
Shares in the price bracket between 500,000 won and 1 million won also posted an average profit of 10.92 percent.
“Although stocks with lower prices may seem more likely to rise, those shares are cheap for good reasons,” a market watcher said.
“Investors are advised to thoroughly examine the firms’ value, potential, market conditions and other variables.”