The value-up related stocks, which had fallen after the declaration of a state of emergency, have not yet recovered significantly; however, prospects suggest that attention is needed from a long-term perspective. This is because they could be utilized as important tools in the future competition for power.
According to Daishin Securities on the 18th, the KOSPI index dropped by 5.6% to 2360 after the declaration of the state of emergency, but it is currently recovering. By sector, while IT hardware, semiconductors, shipbuilding, and healthcare sectors have risen compared to before the emergency declaration, nonferrous metals, forestry, finance, utilities, and telecommunications declined.
In particular, the semiconductor sector did not decline after the state of emergency was declared and instead showed an increase. After only a -0.2% drop since the 3rd, just before the declaration of the emergency, it has continued to rise, showing a 5.2% increase. SK Hynix rose by 8.7%, while Samsung Electronics experienced a slight decline of -0.9% but later increased by 4.7%, contributing to the recovery of the index.
Jo Jae-woon, a Research Institute researcher at Daishin Securities, noted, "The amount of purchases by institutions had a significant impact, and the role of pension funds and share buybacks in the recovery could be important."
Sectors that experienced high declines shared a common trait of high expectations for value-up. Utilities dropped by -14.7%, insurance by -12.5%, banks by -12.4%, and telecommunications by -7.8%. Research Institute's Jo explained, "These areas have seen a recovery of less than 5% after the low point," adding, "They showed low recovery compared to their declines."
Research Institute's Jo stated, "Considering the intensity of the rebound and foreign capital supply, the healthcare and IT hardware sectors remain advantageous options amid ongoing uncertainties," adding, "In the value-up sector, there is also the possibility of price recovery if trust is built in earnings stability and shareholder returns, similar to telecommunications."