Although the domestic stock market has entered a bull run as the Kospi index set all-time highs for three straight days, buying sentiment appears concentrated in large technology stocks. The gap in gains between large caps and small caps widened to about double.
According to the Korea Exchange on the 14th, since the start of this month the Kospi large-cap index rose 8.5%, from 3,153.95 on the 1st to 3,421.29 on the 12th.
During the same period, Kospi mid-caps climbed from 3,434.05 to 3,646.61, and small caps from 2,409.89 to 2,507.71, up 6.2% and 4.1%, respectively.
The rise in Kospi large caps exceeded twice that of small caps. The trend is similar when viewed through the KRXTMI (Total Market Index), which combines the Kosdaq market. The KRXTMI is a market index compiled by the Korea Exchange that reflects both the KOSPI market and the Kosdaq market.
The KRX mid-to-large TMI rose 8.3%, outpacing small (6.5%) and micro (3.5%). Mid-to-large covers stocks accounting for 94% or more of cumulative market capitalization, small covers 94%–99%, and micro covers under 99%.
The outperformance of large caps over small caps is analyzed as stemming from investor sentiment concentrating on large technology stocks as the artificial intelligence (AI) industry expands.
The United States' large technology stocks, the "Magnificent 7," have led the global market, influencing the domestic market as well. Samsung Electronics and SK hynix on the 12th set a 52-week intraday high and an all-time high, respectively.
From the 1st to the 12th of this month, the KRX Semiconductor Index surged 15.9%, from 3,780.05 to 4,382.77. That is roughly double the Kospi's 8.0% rise over the same period. Defense, shipbuilding, and financial large caps also drove the domestic stock gains.