Late Wednesday, the Korean Exchange warned traders about speculative buying and selling in superconductor-related shares following claims of a technological breakthrough that might revolutionize the power business.
On Thursday, small-cap shares equivalent to Duksung Co. and Sunam Co. surged as a lot as their 30% day by day limits for his or her third consecutive session. Sunam has jumped 220% within the final eight classes, whereas Duksung has elevated 165%. Mobiis Co. and Shinsung Delta Tech Co. have risen by 125% and 107%, respectively.
Because of the volatility, the trade advised traders to watch out earlier than investing in Duksung, Sunam, Mobiis, and Shinsung Delta Tech. It issued the bottom of a three-level warning system on the businesses, stopping in need of buying and selling halts.
“The bourse hands down such designations when there’s a probability of speculative bets and unfair trades so that investors may exercise caution before investment,” Bloomberg famous, including, “The exchange operator can escalate warning levels before mandating a one-day trading suspension.”
On July 22, South Korean researchers printed a paper on a new superconductor expertise that makes use of a lead-based materials referred to as “LK-99” — the world’s first superconductor capable of conduct electrical energy at room temperature and ambient stress. Typically, superconductivity has solely been achieved at sub-zero temperatures, limiting its use in the actual economic system to just a few industrial functions, equivalent to hospital MRI scanners. The declare of the breakthrough may counsel superconductivity might revolutionize the power business.
“Investors should be cautious on increased volatility in these superconductor theme stocks as their substance is not clear,” mentioned Han Ji-young, an analyst at Kiwoom Securities Co.
“The name of the metal is LK-99. It is a cutting edge ambient pressure room temperature super conductor. It has both huge military and civilian applications. And that’s not even the best part, John, you can make it in your oven at home.” pic.twitter.com/ZHEWqlLESS
— The Klendathu Writoooooooooor (@KlendathuCap) August 2, 2023