"It’s Not Just SK hynix That Rose" A Flood of KOSPI Stocks Hit New Highs

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[The Financial News] Despite uncertainty surrounding ceasefire talks between the U.S. and Islamic Republic of Iran, the KOSPI Composite Index broke above the 6,400 level for the first time on the 22nd. Against that backdrop, stocks hitting new highs are spreading rapidly across the market, drawing attention.
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According to KRX, 40 stocks in the KOSPI Market had touched a 52-week high at least once intraday from the start of this month through the previous day, the 21st. That is about 1.6 times more than the previous month, when investor sentiment was dampened by the fallout from the war in the Middle East, suggesting that the market’s underlying strength is recovering quickly as expectations grow for easing geopolitical risks.
At the center of this rally is semiconductor heavyweight SK hynix Inc. On the 21st, SK hynix Inc. reached 1.228 million won intraday, crossing the 1.2 million-won mark for the first time in history. The stock was lifted by expectations of an improvement in the semiconductor cycle and stronger demand for Artificial Intelligence (AI).
IT parts stocks are also showing strong momentum, led by Samsung Electro-Mechanics, which has extended its rally since the 8th of this month and is setting new highs almost daily. Samsung Electro-Mechanics touched 779,000 won intraday on the 21st, moving above the 700,000-won level. Other power and infrastructure-related stocks, including Taihan Cable & Solution Co., Ltd., LS Group, Doosan Enerbility Co., Ltd., and Hyosung Heavy Industries, also posted broad gains.
Defense stocks centered on Hanwha Aerospace Co., Ltd. also joined the new-high trend. In addition, LG Innotek Co., Ltd., LS Eco Energy, SK Telecom, DL E&C Co., Ltd., LS ELECTRIC Co., Ltd., and SK eternix Co., Ltd. all hit intraday highs this month. As rotation continues from semiconductors into power and defense, the rally is broadening from the index level to individual stocks.
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Market watchers say the KOSPI Composite Index is beginning to fully reflect improving earnings trends in major industries that had been held back by geopolitical risks. In particular, expectations for better results and the possibility of foreign capital inflows are combining to spread gains across the market, not just on hopes alone but on actual profit growth.
Lee Kyung-min, a researcher at Daishin Securities Co., Ltd., said, "An additional rise in forward EPS is a key factor that enhances the KOSPI’s valuation appeal," adding, "If ceasefire talks are concluded, a strong rebound is possible, and if the economic shock remains limited, a 'V-shaped' recovery can also be expected."
He added, "Foreign investors are also likely to reassess the market’s undervaluation and earnings momentum after passing the climax of selling," and noted, "If the won becomes clearly more stable, a renewed and broader return to net buying is expected."
bng@fnnews.com Kim Hee-sun Reporter