The KOSPI (005930) has rapidly breached the 8,000-point mark recently, but the surge has been driven by a small number of large-cap stocks. Analysts attribute the trend to a chip-centered concentration led by Samsung Electronics (005930) and SK hynix (000660). However, with U.S. semiconductor stocks recently weakening on concerns over interest rate hikes, the likelihood of a sector rotation into non-chip stocks is also gaining traction.
According to the Korea Exchange (KRX) Wednesday, an average of 210 stocks rose in the KOSPI market between May 26 and June 5 this year, while 596 stocks declined. The gap widened from the previous two weeks (May 11-22), when 297 stocks rose and 485 stocks fell.
In particular, most stocks closed lower even during the period when the KOSPI set record highs. On June 1-2 this year, the KOSPI closed at 8,788.38 and 8,891.49 points, respectively, setting all-time highs for two consecutive days. During that period, only 155 and 252 of 835 stocks rose, respectively, with the rest closing flat or lower.
The phenomenon is attributed to the fact that price movements of Samsung Electronics and SK hynix, which together account for more than half of the KOSPI's market capitalization, are determining the direction of the entire market. On June 1-2, Samsung Electronics and Samsung Electronics preferred shares (005935) rose 13.72% and 14.32%, respectively. LG Electronics (066570) also jumped 33.96% on expectations for physical AI business cooperation with Nvidia, helping drive the KOSPI index.
Securities analysts say that despite the volatility stemming from the chip-concentration structure, a scenario in which investor sentiment toward non-chip stocks ignites is also possible. While semiconductor stocks weakened on rate-hike concerns in the U.S. market, the proportion of rising stocks in the KOSPI as of June 4 (50.1%) also increased from the previous trading day (31.3%). Han Ji-young, a researcher at Kiwoom Securities, said, "This suggests the potential for improvement in a market environment (Narrow Market) where only a very small number of sectors, such as semiconductors, saw share prices rise." He added, "From a short-term tactical perspective, it may be worth paying attention to sectors such as securities, power equipment, defense, and bio."
