Cosmax gains around 5% as K-beauty stocks rise in tandem amid market rout [Stocks NOW]

[Financial News] Cosmetics stocks, including Cosmax and Kolmar Korea, are rising in tandem as South Korea’s stock market plunges.
As of 10:13 a.m. on the 5th, Cosmax was trading at KRW 261,500, up KRW 14,000 (5.66%) from the previous trading day. The stock opened at KRW 252,000 and rose as high as KRW 279,000 intraday.
Kolmar Korea was up KRW 6,100 (5.40%) at KRW 119,000, after surging as high as KRW 125,700 intraday. Silicon2 was trading at KRW 29,050, up KRW 1,350 (4.87%), while APR was up KRW 10,500 (4.13%) at KRW 264,500. d’Alba Global Co., Ltd. was also up KRW 3,800 (2.56%) at KRW 152,200.
Buying is flowing into K-beauty-related stocks, which have recently undergone a correction, as both the KOSPI and KOSDAQ plunge. The continued strength in cosmetics exports, along with expectations for major companies’ third-quarter earnings and the U.S. year-end shopping season, appears to be supporting investor sentiment.
South Korea’s cosmetics exports reached $1.213 billion last September, up 29.5% from the same month a year earlier and a record monthly high. Exports are growing, led by North America and Europe, while markets are expanding into Latin America and elsewhere. Expectations for improved results are therefore continuing not only for brand companies but also for original design manufacturing (ODM) companies that make the products and overseas distributors.
ODM companies such as Cosmax and Kolmar Korea are expected to benefit from increased orders from clients ahead of the U.S. year-end shopping season. Some companies’ products that could not be shipped in the third quarter due to delays in the supply of cosmetic containers and other factors may be reflected in fourth-quarter sales, analysts say. The gains also spread today to brand companies such as APR and d’Alba Global, as well as Silicon2, a K-beauty distributor.

[email protected] Lee Jeong-hwa Reporter