Photographer: SeongJoon Cho/Bloomberg

Hanjin Shipping Soars a Day After Exchange Calls Stock ‘Trash’

  • Stock surged as much as 20% today after falling 24% yesterday
  • Volatility nears a record high, driven by day traders

One day after a Korean stock exchange official called the shares of Hanjin Shipping Co.trash,” investors piled in, sending them 15 percent higher.

The company, on the verge of bankruptcy, is a darling of retail investors. Volatility is reaching a record, while the stock was the most-traded on the Kospi index in the past two days.

“Retail investors are buying the stock so they can make double-digit profits -- 10% or 20% a day,” said Kim Seung Churl, an analyst at Meritz Securities in Seoul. “The volatility for this kind of company is really high.”

Foreign investors sold a net 2 billion won of Hanjin Shipping’s shares since Jan. 9, while individual investors bought a net 1.9 billion won worth during the period, according to data from the Korean stock exchange.

— With assistance by Jake Ulick

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