Momentum Spreads to Semiconductor Materials, Parts and Equipment Stocks... Institutions and Foreign Investors Bet on KOSDAQ Gains

Institutional investors and foreign investors are betting on gains in the Korea Securities Dealers Automated Quotations (KOSDAQ). As the expansion of the Artificial Intelligence (AI) industry continues, interest has grown not only in large semiconductor stocks but also in a wider range of beneficiaries. Buying has also spread to semiconductor materials, parts and equipment stocks in the KOSDAQ market. Market watchers say the AI cycle is likely to continue, but they see a recovery in biotech stocks as the key to further KOSDAQ gains.
According to ETF CHECK by Koscom Corporation on the 3rd, institutional investors net bought 561.3 billion won worth of Samsung KODEX KOSDAQ 150 ETF over the past month from March 30 to April 29. They also bought 194.6 billion won of KODEX KOSDAQ 150 Leverage ETF, 127.5 billion won of TIGER KOSDAQ150, 119.8 billion won of KoAct KOSDAQ Active ETF, 43.3 billion won of Timefolio TIME KOSDAQ Active ETF, and 10.4 billion won of ACE KOSDAQ 150 ETF. These exchange-traded funds are designed to profit from KOSDAQ gains. Foreign investors also net bought KOSDAQ-tracking ETFs during the same period, including 89 billion won of Mirae Asset TIGER KOSDAQ150 Leverage ETF and 11.4 billion won of KODEX KOSDAQ 150 Leverage ETF.
KOSDAQ had recently lagged far behind the KOSPI Composite Index in terms of gains, but it has started to match the pace since the end of last month. From the 1st to the 23rd of last month, the KOSPI Composite Index rose 28.17 percent, while KOSDAQ gained only 11.59 percent. However, from April 24 to 30, after KOSDAQ moved above the 1,200 level, the KOSPI Composite Index and KOSDAQ rose by 1.90 percent and 1.54 percent, respectively, showing similar momentum.
In particular, funds are flowing into semiconductor materials, parts and equipment stocks. In April alone, institutions net bought 203.7 billion won of ISC, 121.2 billion won of SIMMTECH Co., Ltd., 67.8 billion won of FADU, 66.4 billion won of LEENO Industrial Inc., and 51.7 billion won of TES in the KOSDAQ market. Over the same period, foreign investors also bought 156.9 billion won of Jusung Engineering, 129.7 billion won of Dongjin Semichem Co., Ltd., 92.4 billion won of Koh Young Technology, and 91.5 billion won of Jeju Semiconductor.
The trend appears to reflect investors shifting toward related beneficiaries rather than large semiconductor names as the AI investment cycle lengthens. Samsung Electronics Co., Ltd. and SK hynix, the No. 1 and No. 2 stocks by market capitalization in the domestic market, have already risen sharply this year, up 83.90 percent and 97.54 percent, respectively.
Lee Jeong-bin, a researcher at Shinhan Securities Co., Ltd., said, "Investors are looking for leading names outside the semiconductor sector." He added, "Stocks that benefit from the broader AI cycle, such as IT hardware, are drawing attention. Data centers need memory chips and semiconductor substrates."
Jeong Hee-chan, a researcher at Samsung Futures, said, "Investor sentiment toward AI improved sharply after strong earnings announcements from Samsung Electronics Co., Ltd. and SK hynix last month, along with a continued rally in U.S. semiconductor stocks." He added, "In KOSDAQ, semiconductor materials, parts and equipment stocks also strengthened on the back of the AI-driven boom."
However, some say that a broad-based rise in biotech stocks is essential for KOSDAQ to enter a sustained uptrend. Jeong said, "Despite the strength in semiconductor materials, parts and equipment stocks, sentiment toward the biotech sector, which has the largest market capitalization weight, deteriorated, and KOSDAQ continued to underperform the KOSPI Composite Index in April." He added, "With major global conferences scheduled one after another in May and June, we should watch whether sentiment toward biotech stocks recovers and allows KOSDAQ to widen its gains."
There are also calls for additional policy momentum. A financial investment industry official said, "With large semiconductor stocks recently showing strong performance, KOSDAQ has been relatively weak." The official added, "The government has rolled out policies to boost KOSDAQ, but they still have limits when it comes to driving the index higher."
yimsh0214@fnnews.com Lim Sang-hyeok Reporter