KOSPI Hits 3200... Underwhelming 'Big 3'

KOSPI Continues Rising for a Month but Top Market Cap Stocks Lag
Samsung Electronics, SK Hynix, Naver Underperform KOSPI's Monthly Gains
Big 3 Rebound Needed for Market Step Up... "Strong Earnings Outlook Indicates Ample Upside Potential"

[Asia Economy Reporter Minwoo Lee] The KOSPI continued its steady rise, reaching the 3200 level for the first time since January. Analysts suggest that for the KOSPI to advance further and stabilize above 3200, a rebound in the market capitalization top-tier stocks such as Samsung Electronics, SK Hynix, and Naver is essential, as these stocks have been somewhat sluggish.

On the 16th, the KOSPI opened at 3206.76, up 0.36% from the previous day. Following the intraday record of 3200 the day before, it started again above 3200. This is the first time the KOSPI has surpassed 3200 since January 26. Since the 23rd of last month, it has been steadily trending upward, rising 6.31% until the previous day, breaking out of the 2900?3100 box range, which had fallen to 2929.36 on the 9th of last month.

During this period, stocks ranked 4th to 10th in market capitalization (excluding preferred shares) rose even more sharply. LG Chem, ranked 4th, increased by 14.97%, and Kakao, ranked 5th, rose by 22.83%. Samsung Biologics (13.04%) and Samsung SDI (12.78%) also showed double-digit gains. These increases were two to three times higher than the KOSPI’s overall rise during the same period.

Nevertheless, the top market capitalization stocks were somewhat sluggish. Samsung Electronics, the KOSPI’s leading stock, rose only 2.81% during the same period. On the 6th, it briefly surpassed the 85,000 KRW mark for the first time in about a month but soon shifted to a downward trend, dropping to the 82,000 KRW range intraday on the 13th. SK Hynix, ranked 2nd in market capitalization, showed a similar pattern, rising only 1.85% from the 23rd of last month to the previous day, significantly below the KOSPI’s 6.31% increase. Naver, ranked 3rd, rose by about 1.30%.

Even when combining all stocks ranked 4th to 10th, their total market capitalization does not match that of Samsung Electronics. Based on the previous day’s closing price, the combined market capitalization of the 4th to 10th ranked stocks was approximately 40.5136 trillion KRW, about 10 trillion KRW less than Samsung Electronics’ 50.2587 trillion KRW. The weight in the KOSPI market also shows a clear difference. Samsung Electronics, SK Hynix, and Naver together account for 29.06% of the total KOSPI market capitalization. Even combined, the 4th to 10th ranked stocks account for only 14.98%, which is less than Samsung Electronics’ individual weight of 21.89%. Ultimately, for the KOSPI to advance further, a rebound in the top-tier stocks like Samsung Electronics is essential.

However, since these stocks are expected to show favorable earnings going forward, there is analysis that the KOSPI can sufficiently move into a new territory. In particular, positive expectations are growing as the semiconductor sector, which includes Samsung Electronics and SK Hynix, has a bright outlook. Due to the semiconductor supply shortage, DRAM prices are expected to surge, and the NAND segment is also expected to rebound, leading to a rapid improvement in the memory semiconductor market.

Choi Doyeon, a researcher at Shinhan Financial Investment, said, "Since the beginning of the year, Samsung Electronics’ stock price has been sluggish due to concerns over the suspension of operations at the Texas Austin plant in the U.S., resulting in a slowdown in smartphone shipments, and worries about intensified competition following Intel’s entry into the foundry market. Currently, these concerns are being resolved, and especially in the economic recovery phase, the profit growth rate of memory semiconductors, which have almost no cost increase, is overwhelming the market, leading to expectations of record-high earnings this year."

This content was produced with the assistance of AI translation services.