📚 Related Series Pearl Abyss Flow Bottom Test / Pearl Abyss Hub / May 17 Market Snapshot / Complete KOSDAQ Guide
The past two months were a decisive KOSPI large-cap win and an extreme KOSDAQ relative slump. On a market-cap-weighted proxy, KOSPI gained +49.8% while KOSDAQ gained +11.4%, leaving KOSDAQ -38.4 percentage points behind KOSPI. But flows are starting to move differently from prices. Over the past five sessions, KOSDAQ recorded +KRW 707.9bn of foreign-plus-institutional buying and +KRW 410.4bn of program buying. KOSPI, over the same period, recorded -KRW 14.058tn of foreign-plus-institutional selling and -KRW 8.157tn of program selling. Price says KOSPI won. Fresh money is starting to look back at KOSDAQ.
Key Takeaways
- Two-month price action is a KOSPI victory. On a market-cap-weighted proxy, KOSPI returned +49.8% versus KOSDAQ +11.4%. Over the past 20 sessions, the gap was also extreme: KOSPI +27.0%, KOSDAQ -0.1%.
- Equal-weight returns tell a different story. On a two-month equal-weight basis, KOSPI returned +14.5% and KOSDAQ +17.4%. The breadth of the overall KOSDAQ universe has not collapsed. The market was pulled upward by mega-cap AI infrastructure names in KOSPI.
- The KOSDAQ/KOSPI relative ratio is near a two-month low. The current relative ratio is 74.1, down -29.5% from the two-month high of 105.1. The 40-session standard score is -1.88σ, which is already an oversold zone in relative-strength terms.
- Flows are improving first in KOSDAQ. Over the past five sessions, KOSDAQ foreigners plus institutions bought +KRW 707.9bn, while program flows added +KRW 410.4bn. KOSPI, by contrast, continued to see foreign-plus-institutional and program selling.
- The institution mix is different. KOSPI institutional buying is mostly financial-investment flow, which can include index, derivatives, and arbitrage activity. KOSDAQ has smaller but visible investment-trust buying of +KRW 124.9bn.
- Pearl Abyss ranks 7th among the top 100 KOSDAQ names by drawdown. It fell -41.3% from its two-month high of KRW 77,400 to KRW 45,450, roughly 19 percentage points deeper than the top-100 median drawdown of -22.0%.
- Pearl Abyss looks closer to an investable rebound candidate than a simple oversold bounce. It has 2026E OP of KRW 476.9bn, 2026E PER of 8.0x, 2026E ROE of 36.9%, five-session foreign-plus-institutional buying of +KRW 22.08bn, and individual selling of -KRW 22.33bn.
The conclusion is simple. KOSDAQ has not yet been confirmed as the new market leader. But flows are starting to turn before prices confirm it. Within that setup, Pearl Abyss is one of the most interesting oversold large-cap candidates.
1. Data Basis and Caveats
The numbers in this post are not official KRX index values. They are market-cap-weighted and equal-weighted proxy series built from individual-stock data in the Research OS local database.
| Item | Basis |
|---|---|
| Data | Research OS local DB |
| As of | 2026-05-21 |
| Analysis period | 2026-03-21 to 2026-05-21 |
| Trading sessions | 42 sessions |
| Index method | Individual-stock-based market-cap-weighted proxy |
| Caveat | Not official KRX index data |
The purpose is not to replicate the official index perfectly. The purpose is to find the point where relative price strength and flow direction diverge.
2. Price Says KOSPI Large Caps Won
Looking only at price over the past two months, the conclusion is clear: KOSPI large caps won decisively.
| Category | KOSPI | KOSDAQ | Interpretation |
|---|---|---|---|
| 2M market-cap-weighted return | +49.8% | +11.4% | KOSPI wins decisively |
| 2M equal-weight return | +14.5% | +17.4% | Breadth is not bad for KOSDAQ |
| Recent 20D return | +27.0% | -0.1% | KOSDAQ was fully sidelined in the past month |
| Recent 5D return | +4.8% | -0.5% | KOSPI still leads short term |
| 2M average advancer ratio | 43.1% | 41.5% | Breadth is weak in both markets |
The key is the gap between market-cap-weighted and equal-weighted returns. On a market-cap-weighted basis, KOSPI crushes KOSDAQ. But on an equal-weight basis, KOSPI is +14.5% and KOSDAQ is +17.4%.
That means the entire KOSPI universe was not uniformly strong. It means mega-cap AI infrastructure names such as Samsung Electronics, SK Hynix, and Samsung Electro-Mechanics pulled the KOSPI index upward.
By contrast, KOSDAQ looked weak at the index level, but the broader stock universe did not completely break down. The essence of KOSDAQ weakness was not that every stock was worse. It was that market-cap leadership and flow leadership were captured by KOSPI mega caps.
3. KOSDAQ/KOSPI Relative Strength Is Oversold
If we set the KOSDAQ/KOSPI relative ratio to a base of 100, the current position becomes clearer.
| Item | Value |
|---|---|
| Relative ratio at start of 2M period | 99.7 |
| 2M high | 105.1, 2026-03-31 |
| Current | 74.1 |
| Versus high | -29.5% |
| 2M change | -25.6% |
| Versus 20D average | -12.5% |
| 40-session standard score | -1.88σ |
KOSDAQ is now at its weakest relative level versus KOSPI in the past two months. A 40-session standard score of -1.88σ is statistically a fairly deep relative-weakness zone.
But that does not automatically mean “buy KOSDAQ now.” Relative-strength oversold conditions show rebound potential, not rebound confirmation.
The current setup is more accurately described this way:
Price: KOSDAQ at a relative low
Flows: early improvement signs
Trend: not yet confirmed
Conclusion: rebound preparation is possible, but price confirmation is still needed
KOSDAQ has entered a zone that looks cheap in relative terms. It is still too early to say the market has started buying it aggressively.
4. Flows Are Looking at KOSDAQ Before Prices Confirm It
The full two-month flow picture is not clean in either market.
Unit: KRW 100mn
| Market | Individuals 2M | Foreigners 2M | Institutions 2M | Foreigners+Institutions 2M | Program 2M |
|---|---|---|---|---|---|
| KOSPI | +252,628 | -555,191 | +177,042 | -378,149 | -293,401 |
| KOSDAQ | +4,765 | +19,909 | -36,542 | -16,632 | +6,300 |
Over two months, foreigners plus institutions were negative in both markets. But the quality is different.
In KOSPI, foreigners and program flows sold heavily, while individuals and financial-investment accounts absorbed the supply. The index was strong, but the quality of the flow was not particularly clean.
In KOSDAQ, institutions sold, but foreigners and program flows were net buyers. Even though KOSDAQ prices were weak, foreigners and program trading did not fully abandon the market.
The more important signal is the recent 20-session and five-session change.
| Market | Foreigners+Institutions 20D | Program 20D | Foreigners+Institutions 5D | Program 5D |
|---|---|---|---|---|
| KOSPI | -323,604 | -219,789 | -140,578 | -81,572 |
| KOSDAQ | +876 | +5,182 | +7,079 | +4,104 |
This is the core of the post.
Prices are overwhelmingly stronger in KOSPI, but recent flow improvement is better in KOSDAQ.
Over the past five sessions, KOSDAQ recorded +KRW 707.9bn of foreign-plus-institutional buying and +KRW 410.4bn of program buying. KOSPI continued to see foreign-plus-institutional and program selling.
Price is the result of the past. Flow is a hint about the next move. KOSDAQ is weak in price terms, but in flow terms it is starting to look like a market testing a bottom.
5. Institution Breakdown: KOSPI Is Financial Investment, KOSDAQ Shows Investment Trusts
The internal institutional breakdown sharpens the contrast.
| Market | Financial Investment 5D | Insurance 5D | Investment Trusts 5D | Private Funds 5D | Pension/National 5D |
|---|---|---|---|---|---|
| KOSPI | +45,340 | -623 | +1,143 | +3,299 | -2,409 |
| KOSDAQ | +177 | +4 | +1,249 | +205 | -690 |
Most KOSPI institutional buying came from financial-investment accounts. That flow can include index, derivatives, and arbitrage activity. It is risky to read it as long-duration directional capital.
KOSDAQ is smaller in absolute size, but it shows investment-trust buying. That matters when looking for rebound candidates among oversold growth stocks. Investment trusts can be the first capital to touch KOSDAQ mid- and large-cap growth baskets again.
Pensions and insurance accounts have not yet joined. So this is not a confirmed flow turn. It is an early turn. But the interpretation that KOSDAQ has been completely abandoned is wrong.
6. Pearl Abyss: 7th-Largest Drawdown Among Top 100 KOSDAQ Names
Now narrow the lens to Pearl Abyss. Among the top 100 KOSDAQ names, Pearl Abyss ranks 7th by drawdown from its two-month high.
| Item | Basis |
|---|---|
| Data | Research OS local DB |
| Price date | 2026-05-21 |
| Analysis period | 2026-03-21 to 2026-05-21 |
| High price basis | Intraday high over the two-month window |
| KOSDAQ top 100 | Market-cap proxy based on foreign-held shares and foreign ownership ratio |
| Coverage | 1,688 KOSDAQ names; drawdowns calculated for top 100 |
Pearl Abyss’s two-month high was KRW 77,400 on April 1, 2026. Its closing price on May 21, 2026 was KRW 45,450.
Drawdown from high = 45,450 / 77,400 - 1
= -41.3%
The drawdown distribution for the top 100 KOSDAQ names is as follows.
| Category | Drawdown from high |
|---|---|
| Average | -22.3% |
| Median | -22.0% |
| Bottom quartile threshold | -29.5% |
| Bottom decile threshold | -34.3% |
| Down more than -20% | 57 names |
| Down more than -30% | 23 names |
| Down more than -40% | 7 names |
At -41.3%, Pearl Abyss sits exactly inside the seven-name group down more than -40%. This is not merely “somewhat oversold.” It is one of the deepest large-cap drawdowns in KOSDAQ.
7. Comparing the Largest Drawdowns
The top 10 drawdowns among the top 100 KOSDAQ names are:
| Rank | Name | Market-cap rank | 2M high | Current | Drawdown |
|---|---|---|---|---|---|
| 1 | SCD Pharm | 7 | 1,233,000 | 355,000 | -71.2% |
| 2 | Orum Therapeutics | 82 | 124,800 | 65,500 | -47.5% |
| 3 | Rznomics | 63 | 245,250 | 130,000 | -47.0% |
| 4 | Seers Technology | 88 | 63,200 | 34,300 | -45.7% |
| 5 | Woori Technology | 39 | 29,500 | 16,700 | -43.4% |
| 6 | ABL Bio | 11 | 189,400 | 109,900 | -42.0% |
| 7 | Pearl Abyss | 38 | 77,400 | 45,450 | -41.3% |
| 8 | LigaChem Biosciences | 15 | 224,000 | 139,500 | -37.7% |
| 9 | Sampyo Cement | 84 | 19,690 | 12,780 | -35.1% |
| 10 | Curiox Biosystems | 81 | 126,800 | 82,500 | -34.9% |
Pearl Abyss has two distinguishing features in this table.
First, it fell alongside biotech-event names, but it is a different animal. SCD Pharm, ABL Bio, LigaChem, Peptro, and HLB are largely clinical, licensing, or regulatory event options. Even when flows improve, valuation is difficult to anchor on earnings.
Second, Pearl Abyss can be discussed with earnings numbers. It has 2026E OP of KRW 476.9bn, 2026E PER of 8.0x, and 2026E ROE of 36.9%. The debate is not “is this an option with no earnings?” The debate is “are the earnings estimates right?”
That is why Pearl Abyss is different within the oversold group. It is not a biotech-event rebound candidate. It can become an investable rebound candidate if earnings and flows confirm together.
8. Pearl Abyss Among the Top 20 Oversold Names
Looking again at the key oversold names through earnings and flows makes Pearl Abyss’s position clearer.
| Rank | Name | From high | 26E OP | 26E PER | 26E ROE | 5D Foreigners+Institutions | 20D Foreigners+Institutions | 5D Individuals | 5D Program |
|---|---|---|---|---|---|---|---|---|---|
| 1 | SCD Pharm | -71.2% | 450 | [Unconfirmed] | [Unconfirmed] | +228.8 | +281.4 | -42.0 | [Unconfirmed] |
| 4 | Seers Technology | -45.7% | 607 | 22.6x | 86.1% | +114.5 | +22.2 | -121.7 | +172.3 |
| 5 | Woori Technology | -43.4% | [Unconfirmed] | [Unconfirmed] | [Unconfirmed] | +368.5 | +9.6 | +6.1 | +190.1 |
| 6 | ABL Bio | -42.0% | -486 | Loss-making | -26.4% | +564.0 | -1,026.5 | -556.5 | +779.1 |
| 7 | Pearl Abyss | -41.3% | 4,769 | 8.0x | 36.9% | +220.8 | -73.8 | -223.3 | +235.6 |
| 8 | LigaChem Biosciences | -37.7% | 268 | 116.1x | 8.1% | -860.4 | -815.0 | +821.1 | -149.4 |
| 13 | Peptro | -33.2% | [Unconfirmed] | [Unconfirmed] | [Unconfirmed] | -263.9 | -958.8 | -70.3 | [Unconfirmed] |
| 15 | Oscotec | -32.7% | 340 | 46.5x | 16.6% | -76.4 | -237.1 | +80.7 | +7.5 |
| 19 | HLB | -31.7% | [Unconfirmed] | [Unconfirmed] | [Unconfirmed] | -123.1 | -664.5 | -10.5 | -18.1 |
Pearl Abyss has the best balance in this table.
- The drawdown is deep enough.
- Valuation pressure is low at 8.0x 2026E PER.
- It has an earnings base with 2026E OP of KRW 476.9bn.
- The five-session flow shows a handoff structure: foreigners plus institutions +KRW 22.08bn, individuals -KRW 22.33bn.
- But 20-session foreign-plus-institutional flow is still -KRW 7.38bn, so this is not yet confirmed accumulation.
Pearl Abyss is therefore not a stock where the reversal is already complete. It is a stock where we need to verify whether the early reversal is real.
9. Pearl Abyss Detailed Flow
Pearl Abyss’s recent five-session flow looks different from the prior two weeks.
| Investor group | 5D net buying |
|---|---|
| Individuals | -KRW 22.33bn |
| Foreigners | +KRW 20.77bn |
| Institutions total | +KRW 1.32bn |
| Financial investment | -KRW 1.61bn |
| Insurance | +KRW 0.01bn |
| Investment trusts | +KRW 0.30bn |
| Private funds | +KRW 2.62bn |
| Pension/National | +KRW 0.01bn |
| Other corporations | -KRW 0.04bn |
| Other foreigners | +KRW 0.29bn |
The good part is clear. Individuals sold, while foreigners and private funds absorbed the supply. That is exactly the kind of structure investors want to see first in an oversold bottom test.
But it is not yet a complete turn. Over 20 sessions, foreigners plus institutions are still -KRW 7.38bn. The past five sessions improved, but cumulative flow has not fully turned.
The wording needs to be precise.
The flow turn is not confirmed yet.
But early signs of a flow turn have appeared.
If the May 18 note framed Pearl Abyss as a “flow bottom test,” the May 21 data updates that judgment by one step. The key now is whether the bottom test continues without failing.
10. Comparative Judgment
Pearl Abyss vs Oversold Biotech Names
Pearl Abyss is different from SCD Pharm, ABL Bio, LigaChem, Peptro, and HLB.
Most oversold biotech names are clinical, licensing, or regulatory event options. Even when flows are strong, valuation is hard to anchor on earnings. ABL Bio has strong five-session flow, but 2026E operating profit is -KRW 48.6bn. LigaChem trades at 116.1x 2026E PER and has -KRW 86.04bn of foreign-plus-institutional selling over the past five sessions.
Pearl Abyss is different. It has 2026E OP of KRW 476.9bn, 2026E PER of 8.0x, and 2026E ROE of 36.9%. So the core question is not “can it succeed?” but “how much of the 2026 earnings base can be sustained into 2027?”
Pearl Abyss vs Seers Technology
Seers Technology is the most interesting comparison. It has 2026E OP of KRW 60.7bn, 2026E PER of 22.6x, 2026E ROE of 86.1%, and five-session foreign-plus-institutional buying of +KRW 11.45bn. Its -45.7% drawdown also gives it rebound torque.
But institutions are still weak overall, and foreigners are absorbing most of the supply. Pearl Abyss has +KRW 20.77bn of foreign buying and +KRW 2.62bn from private funds. Its valuation is much lower.
On a risk-adjusted basis, Pearl Abyss > Seers Technology. But both still require additional confirmation of flow quality.
Pearl Abyss vs Woori Technology and Sungho Electronics
Woori Technology and Sungho Electronics have strong flows, but weaker earnings and consensus anchors. Woori Technology has +KRW 36.85bn of five-session foreign-plus-institutional buying, but earnings-based comparison is blocked. Sungho Electronics may have strong short-term institutional buying, but if foreign selling and individual buying are mixed in, investors need to watch for distribution.
Pearl Abyss may have weaker flow intensity than some thematic names. But it is more investable because the drawdown can be explained with earnings numbers and valuation.
11. Practical Judgment
The current market can be summarized as follows.
| Item | Judgment |
|---|---|
| Price | KOSPI large-cap leadership, KOSDAQ at relative lows |
| Flow | KOSPI price is strong, but flow quality is weak |
| KOSDAQ | Price is weak, but foreign, program, and investment-trust flows are improving |
| Meaning | KOSDAQ rebound setup is forming, but price confirmation is needed |
| Pearl Abyss | Top investable oversold candidate, but flow turn is not confirmed |
There are three entry triggers for KOSDAQ.
- KOSDAQ/KOSPI relative ratio rebounds for three consecutive sessions.
- KOSDAQ foreign-plus-program buying continues.
- Oversold KOSDAQ large caps repeatedly show individual selling absorbed by foreigners and institutions.
Pearl Abyss has four separate triggers.
- Defense near KRW 45,000.
- Continued foreign and private-fund buying.
- Recovery above KRW 47,200.
- Recovery in 2Q guidance or long-tail/DLC expectations after IR/NDR.
The invalidation conditions are also clear.
| Condition | Interpretation |
|---|---|
| Break below the KRW 44,000 zone | Recent flow turn likely failed |
| Foreign five-session buying flips back to selling | Low-price re-entry was a one-off defense |
| KOSDAQ/KOSPI relative ratio fails to rebound | Market-wide rotation is delayed |
| 2Q guidance or long-tail thesis weakens | Fundamental thesis is discounted again |
12. Final Line
The past two months were a decisive KOSPI large-cap win and an extreme KOSDAQ relative slump. On a market-cap-weighted proxy, KOSPI gained +49.8% and KOSDAQ +11.4%, leaving KOSDAQ -38.4 percentage points behind. But on an equal-weight basis, KOSPI was +14.5% and KOSDAQ +17.4%. This was not a market where all of KOSPI was strong. It was a market where mega-cap AI infrastructure names pulled the KOSPI index higher.
The KOSDAQ/KOSPI relative ratio is now 74.1, down -29.5% from its two-month high, with a 40-session standard score of -1.88σ. In relative-strength terms, it is already deeply oversold. The more important point is flow. Over the past five sessions, KOSDAQ foreigners plus institutions bought +KRW 707.9bn and program flows added +KRW 410.4bn. KOSPI saw -KRW 14.058tn of foreign-plus-institutional selling and -KRW 8.157tn of program selling over the same period. Price says KOSPI won, but flows are starting to look back at KOSDAQ.
Pearl Abyss is the representative watch name in this setup. It ranks 7th among the top 100 KOSDAQ names by drawdown, falling -41.3% from KRW 77,400 to KRW 45,450. That is roughly 19 percentage points deeper than the top-100 median drawdown of -22.0%. But it has 2026E OP of KRW 476.9bn, PER of 8.0x, and ROE of 36.9%. Recent five-session flow shows individuals -KRW 22.33bn, foreigners +KRW 20.77bn, and institutions +KRW 1.32bn. That is why this is not just a simple oversold bounce. It can be treated as an investable rebound candidate.
Still, the reversal is not confirmed. Twenty-session foreign-plus-institutional flow is still -KRW 7.38bn, and price has not yet confirmed a KOSDAQ relative-strength rebound. This is a phase where flows are starting to return, but prices have not confirmed yet. Pearl Abyss is less a stop-loss candidate than an oversold large-cap where rebound torque can rise if KRW 45,000 holds and foreign/private-fund buying continues.
This article is for research and commentary purposes only and is not investment advice. Market returns, relative ratios, flows, drawdown ranks, and consensus numbers are based on the Research OS local database. The data date is May 21, 2026. The figures are individual-stock-based proxy series, not official KRX index values. The KOSDAQ top 100 is constructed from a market-cap proxy using foreign-held shares and foreign ownership ratio, and may differ from actual market-cap rankings. Pearl Abyss 2026E OP of KRW 476.9bn, 2026E PER of 8.0x, and 2026E ROE of 36.9% are local DB consensus figures and may differ from actual results. [Unconfirmed] marks items that could not be reliably verified on the same basis in the comparison group. The analysis may be wrong. Data as of May 21, 2026 KST.