By Lee Min-hyung
A price bubble of biotechnology stocks listed on the junior Kosdaq is showing signs of bursting, shortly after the partial lifting of a ban on the short-selling of shares.
Over the past year, biotech firms have seen their share prices rise much faster than other sectors in South Korea. Also, the overall growth rate of so-called big bio firms far surpassed those other promising sectors, such as info-tech and secondary batteries.
Biotechnology stocks are still considered to be highly vulnerable to further price declines over the short term, but the partial resumption of short-selling, in itself, would not pose a serious threat to their medium- to long-term stock prices.
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