A person prepares to get a COVID-19 test in front of a public health center in Seoul, Tuesday. Yonhap

By Lee Min-hyung

Shares of bio and pharmaceutical companies have made a solid recovery amid fears of a resurgence of the coronavirus, despite an overall worsening of stock market sentiment here.

The first half of this year was a nightmarish period for players in the biotechnology and pharmaceutical industries, as their stock values plummeted as the intensity of the COVID-19 pandemic waned.

Together with reduced public vigilance and government preparation for new variants, escalating fears of a global recession have also resulted in a steep fall in major growth stocks. Bio stocks are representative growth stocks, whose performance remains robust during stock market boom cycles. But their valuation plunges during periods of global financial uncertainty sparked by interest rate hikes.