Seo Tae-Ji's return may boost KOSDAQ market

The KOSDAQ market found the return of Seo Tae-Ji as a big issue to boost the market. Among local million-seller pop artists like Cho Sung-Mo and H.O.T. who are expected to release new album, the long-awaited return of Seo Tae-Ji would make stocks of entertainment companies bullish, according to analysts.

In particular, Daeyoung ANV and SM Entertainment are expected to benefit from it. On August 4, SM hit its daily high while the KOSDAQ index fell by 1.31 points and as many as 371 issues were losers in the day`s trading. Daeyoung also jumped by 7.4% to 9,500 won.

As buy orders rush to stocks related to amusement, culture and game businesses, NC Soft, B-Technology, Iolis and SBS Coco also posted strong gains.

In this connection, an analyst at Samsung Securities said that investors tend to focus on entertainment company issues with the comeback of Seo Tae-Ji, noting that the entire market for music business is expected to grow with brilliant activities of Cho Sung-Mo and Seo Tae-Ji.

Also, a Daewoo Securities analyst should be cautious since it is unclear whether it would emerge as an investment theme at a time when the stock price of Media Solution, the largest shareholder of WaWa Entertainment that will handle sale of Seo Tae-Hi music records and CDs, has been sliding.

Chung Kyung-Joon news91@donga.com