While KOSPI Takes a Breather, Rotation Takes Hold... Will the Market's Concentration Ease?

[Financial News] KOSPI has shown sharp volatility this month amid concerns over a semiconductor peak-out, but the market's concentration has been easing somewhat. As semiconductors, the leading sector, have lost momentum, a rotation has been unfolding into value stocks that had long been out of favor.
As of the 15th, KRX said KOSPI had risen 0.82% so far this month. Of the 946 KOSPI-listed stocks, 363 had gained, accounting for 38.29% of the total. A total of 553 stocks, or 58.46%, fell, while 30 stocks, or 3.17%, were unchanged.
This contrasts with last month, when the rally in KOSPI intensified concentration in a handful of stocks. Although KOSPI jumped 28.45% last month, only 111 of the 948 listed stocks rose, or 11.71% of the total. Another 811 stocks, or 85.55%, declined, while 26 stocks, or 2.74%, were unchanged.
This month, large-cap and mid-cap stocks on KOSPI have each gained 0.86%, posting similar returns. Small-cap stocks, however, fell 2.30%. Last month, large caps surged 33.01%, while mid caps and small caps dropped 8.80% and 14.47%, respectively, narrowing the gap.
As concerns over a semiconductor peak have deepened, including the so-called "Broadcom shock," buying appears to have shifted toward chemicals, insurance, retail and other sectors while semiconductors have slowed. Among this month's top performers were Foosung (95.29%), Mirae Asset Life Insurance (94.90%) and Hyundai Department Store (66.85%).
Kim Joong-won, a researcher at HYUNDAI MOTOR SECURITIES CO., LTD., said, "This month, rotation has been taking place mainly in department stores, banks, insurance, telecom services, and hotels and leisure." He added that this reflected policy hopes, rising interest rates, and individual catalysts such as a recovery in domestic demand and tourism.
Jeong Da-woon, a researcher at LS Securities, said, "During this rally cycle, the market breadth narrowed to an unusually extreme degree, but since the 8th, it has widened somewhat." He added that investors should respond by increasing exposure to leading sectors such as shipbuilding and defense, which had paused for a while, as well as undervalued stocks that have been overlooked.
Others, however, say investors should maintain a strategy centered on leading stocks, as volatility is likely to continue amid concerns over interest-rate hikes. Kang Dae-seung, a researcher at SK Securities, said, "When the stock market falls, most companies decline together, but in rebound phases, gains have been led by the dominant stocks." He noted that since the outbreak of the Iran war, sectors with upgraded earnings forecasts for next year have been semiconductor and IT hardware, which are tied to artificial intelligence capital expenditure, making a strategy focused on existing leaders still valid.

jisseo@fnnews.com Seo Min-ji Reporter