The KOSPI index on the 18th broke through 9,000, writing a new chapter in Korea's stock market. The KOSPI closed at 9,063.84, surging 2.25% (199.60 points) from the previous trading day. The clear drivers of the rally were the semiconductor duo. Samsung Electronics jumped 4% and SK hynix 6% together, powerfully lifting the index.
The two corporations now account for as much as 57% of KOSPI's market capitalization. SK Square, effectively emerging as an alternative investment destination by holding equity in SK hynix, also showed strength, hitting 1.7 million won. The news that SK hynix began supplying samples of HBM4E 12-layer, a next-generation high-bandwidth memory, stoked investor sentiment.
But behind the flashy figure of the index breaking 9,000 lies a deep shadow. The index surged on the day, but only 109 stocks rose on the main board. In contrast, 791 stocks fell, exceeding the gainers by sevenfold. As the tilt toward semiconductors becomes extreme, the divergence of "index up, stocks down," where the index rises but my account melts, is deepening by the day.
The sidelining of the KOSDAQ market was even more severe. While the KOSPI index hit a record high, the KOSDAQ index fell 3%, barely holding the 1,000-point level. On KOSDAQ, 245 stocks rose while as many as 1,436 stocks fell.
Brokerages expect the rally in semiconductor stocks such as Samsung Electronics and SK hynix to continue. As securities firms race to raise their target prices for the two companies, the highest current targets are Samsung Electronics at 610,000 won and SK hynix at 4 million won, presented by SK Securities.
That is because they are projected to post overwhelming operating profits this year and next, and events such as SK hynix's American depositary receipt (ADR) listing are pending.
Kim Rok-ho, an analyst at Hana Securities, said of Samsung Electronics, "We raised our operating profit forecast for next year even after reflecting a performance bonus provision equal to 10% of operating profit," adding, "Samsung Electronics' share price has underperformed other memory makers for more than a month recently, and it is hard to find a clear reason."
Son In-jun, an analyst at Eugene Investment & Securities, said, "Given that the 12-month forward PER based on the consensus (average forecast) for SK hynix and Micron is about 6.8 times and 11 times, respectively, SK hynix's upcoming American depositary receipt (ADR) listing is expected to directly raise valuation expectations."
However, there is also caution that the recent surge cannot be explained by earnings alone. The analysis is that a single-stock leveraged ETF launched at the end of May is distorting supply and demand.
Lee Sang-heon, head of research at iM Securities, said, "It is already widely known in the market that Samsung Electronics and SK hynix will post record-setting results," adding, "Because there is a tendency for prices to rise under the influence of leverage indicators, caution is needed when supply-demand volatility increases around futures and options expiration."