All Five Movers We Covered Were 'Report-Only'. What Next?
KOSPI and KOSDAQ bounced on Friday, but Paper Trail's own market note records a steep weekly drop. Every mover we covered carried the same verdict, and only the U.S. names have had a trading day since.
Seoul — South Korean stocks rebounded on Friday, but Paper Trail's own market note records a steep drop for the week. All five stocks we covered this week (Zillow has two tickers) got the same verdict: report only. The most surprising fact in this week's record is that there is no disclosure-backed case to compare them against.
This week's market
According to Paper Trail's own market note, the week combined a selloff in chips and tech with a jump in oil. The note lists Nasdaq 100 at -5.52%, the SMH semiconductor ETF at -10.53% and WTI crude at +10.41%. Only the energy ETF (XLE) rose, up 4.86%.
The note puts KOSPI at -14.46% and KOSDAQ at -10.93% for the week. It labels the causes, foreign selling and Strait of Hormuz tension, as estimates and says it could not confirm them in October reports. We could not verify the weekly figures against the index data we hold. What the data does confirm is Friday's move.
On Friday, Oct. 16, KOSPI closed at 5,668.05, up 2.05%. KOSDAQ closed at 794.78, up 4.46%, and a buy-side sidecar was triggered on KOSDAQ during the session (Economist report). Thursday was different. Using the Oct. 14 close of 6,008.81 reported by Seoul Shinmun, and working back from Friday's close, KOSPI closed Oct. 15 at 5,554.22. That is a one-day drop of about 7.6%.
In the U.S. on Friday, the S&P 500 fell 1.09% to 7,659.44 and the Nasdaq Composite fell 2.15% to 26,140.03. The note puts VIX at 19.99 (+34.7% on the week) and the fear-and-greed index at 17.9, extreme fear.
The movers we covered, and what came after
| Stock | Verdict then | Move that day | Move since | Note |
|---|---|---|---|---|
| Daeyang Metal | Report only | +29.99% | No session yet | +72% in five sessions, -40.4% vs. Jul. 20 |
| Eco&Dream | Report only | +30.0% | No session yet | Closed at 10,660 won, period high |
| Dynamic Solution | Report only | +17.66% | No session yet | 1,246 won at writing, closed at 1,241 (+17.19%) |
| Kyndryl | Report only | +11.87% | +0.2% | $13.19 to $13.21 |
| Zillow | Report only | +11.05% | -2.0% | $31.46 to $30.82 |
| Zillow (ZG) | Report only | +10.8% | -1.7% | $32.43 to $31.88 |
Korean names. The articles ran on Friday, so no session has followed. They are left out of the comparison. Dynamic Solution's -0.4% in our data is the gap between the price at writing and the close, not a later move. The results will not exist until Monday's session.
Still, the record shows a pattern. Eco&Dream fell 11.62% on Oct. 15 and hit the daily limit the next day. Dynamic Solution fell 8.93% on Oct. 15 and rose 17.19% on Oct. 16. Eco&Dream's latest filing is a securities issuance result posted Oct. 14, and nothing was filed on the day of the limit-up. Daeyang Metal went from 564 won on Oct. 12 to 1,049 won, yet it is still 40.4% below its Jul. 20 close of 1,760 won. Its recent filings cover a shareholder meeting notice, a change of largest shareholder and an early buyback of convertible bonds.
U.S. names. One session has passed. Kyndryl rose another 0.2% and held its jump. Both Zillow tickers gave back 1.7% to 2.0%. One day says little. Kyndryl's latest SEC filings in our data are a September bond-offering 8-K, two 424B5s and an FWP. Zillow's are Forms 3 and 4. News on Zillow includes a report of falling long-term rates lifting housing stocks and a report of a Wells Fargo downgrade. Neither is confirmed by a filing as the cause of the Oct. 15 jump.
Disclosure-backed cases. There were none this week, so the question of whether disclosed good news held up better than reported news cannot be tested. We will hold that comparison until a week with both verdicts.
Dates to watch
Every date in the note falls after next week: the Oct. 28 FOMC decision, GDP and PCE inflation on Oct. 29, and the nonfarm payrolls report on Nov. 6.