[Interview] Go Soong-cheol NH-Amundi CIO: "Year-end is the right time to increase Samsung Electronics weighting"

Strong Rebound Expected for Semiconductors in Early Next Year
KOSPI Projected to Rise to 3400 Level Next Year

Continued Interest Needed in High-Value Themes like 2nd Battery, Hydrogen, Metaverse
Plans to Launch Funds Related to Security, Aerospace, Society, and Governance

Goh Soong-cheol, Chief Investment Officer (CIO) and Executive Director, NH-Amundi Asset Management

[Asia Economy Reporter Minji Lee] "Considering the rise in semiconductor prices, it is best to set the starting point for increasing Samsung Electronics' weighting around the end of this year."

Goh Soong-cheol, Chief Investment Officer (CIO) and Executive Director of NH-Amundi Asset Management, said on the 26th that, considering the current semiconductor spot price trends and investment scale, a strong rebound in the semiconductor sector could occur in the first half of next year. Goh CIO stated, "Semiconductor prices are rising faster than initially expected," and added, "Considering the recovery of key sectors, the KOSPI is expected to rise from its current level to around 3,400 points."

The market expects semiconductor prices to start rising from the second quarter of next year, based on increased semiconductor demand from global PC manufacturers. This optimism has already been reflected in stock prices, with SK Hynix (KRW 1.3175 trillion) and Samsung Electronics (KRW 1.151 trillion) ranking first and second in net purchases by foreigners and institutions this month, rising approximately 10% and 5.4%, respectively, in just over a month. Goh CIO explained, "We initially planned to increase the weighting of Samsung Electronics and related materials and equipment stocks from the first quarter of next year, but we are now aiming to bring this forward to the end of this year." He added, "The recent case where Samsung Electronics surged more than 5% in a single day indicates that investors had largely underweighted semiconductors, and demand to actively accumulate semiconductor stocks will increase."

Thanks to this, the domestic stock market is also expected to continue its upward trend next year. Although there are concerns about liquidity tightening due to the U.S. tapering (asset purchase reduction) and interest rate hikes, the domestic stock market tends to show price synchronization because it is closely linked to the semiconductor index. While corporate growth rates may slow, the fundamental strength is not expected to decline significantly, supporting this outlook. Goh CIO emphasized, "Next year will be a period when tensions between the U.S. and China and global supply chain burdens ease, reducing corporate burdens," and added, "The semiconductor industry can also be spotlighted as a beneficiary related to metaverse infrastructure."

Goh CIO also forecasted that the upward trends in ESG (Environmental, Social, and Governance) themes such as secondary batteries, hydrogen, and carbon neutrality, as well as the metaverse theme, will continue next year. Since the secondary battery and hydrogen themes are not unique to Korea but are global issues attracting worldwide attention, he believes it is not appropriate to reduce weighting solely due to concerns about overvaluation. He said, "It is now necessary to refrain from aggressively investing in traditional cyclical stocks," and added, "The market moves by themes rather than sectors, so it is better to hold themes linked to lifestyle changes and policy shifts even if valuations are high." NH-Amundi Asset Management plans to launch new thematic funds related to security and aerospace next year, as well as funds related to S (Social) and G (Governance).

Finally, for investors, he advised, "Although the asymmetry of information has greatly diminished as interest in stocks has increased, biases can still form at the information reception stage, making it difficult for individuals to construct portfolios on their own," and recommended, "It is necessary to manage funds stably through ETFs or general public offering funds to reduce biases that focus on the shoulders but live in the head."

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