"If You Exclude Samsung Electronics and SK hynix, It's a Bear Market"... Investors Left Behind Despite 9,000-Point KOSPI

[Financial News] Although the KOSPI (Korea Composite Stock Price Index) broke through the 9,000-point mark for the first time ever, 8 out of every 10 stocks have fallen so far this month. As buying concentrated on large semiconductor stocks, the KOSPI excluding Samsung Electronics and SK hynix has actually slipped from the start of the month.
According to the Korea Exchange (KRX) on the 21st, the index rose 6.80% from June 1 to 19. On the 19th, it climbed as high as 9,385.59 intraday, setting a new all-time high. But during that period, only the insurance index, up 16.37%, and the semiconductor index, up 11.40%, outperformed the KOSPI. The other 15 industry indexes lagged behind the KOSPI's gain.
The concentration was also stark at the stock level. Of the 946 KOSPI-listed stocks, only 181 rose during the period, accounting for just 19.1% of the total. By contrast, 741 stocks fell, or 78.3%, while 24 were unchanged. Kyung-min Lee, a researcher at Daishin Securities, analyzed that "outside the semiconductor sector, only a few individual stocks are rising selectively, making differentiation among stocks increasingly clear."
The KOSPI excluding Samsung Electronics and SK hynix is estimated to have fallen from the start of the month. According to the securities industry, the index without the two chip giants stood in the 4,110 range as of the 19th, down from the 4,245 range on the 1st.
This reflects the fact that the two semiconductor leaders now account for a larger share of KOSPI's market cap, while the influence of other stocks has relatively weakened. The combined market cap share of Samsung Electronics and SK hynix rose from 51.7% on the 1st to 54.60% on the 19th. In particular, SK hynix's market cap expanded to 1,969 trillion won on the 19th, putting it close to overtaking Samsung Electronics, whose market cap stood at 2,069 trillion won, for the top spot. By contrast, the KOSPI market cap excluding the two stocks fell from 3,480 trillion won on the 1st to 3,359 trillion won on the 19th.
The securities industry expects the outcome of Micron's earnings release on the 25th local time to determine whether the semiconductor-led rally will continue. Micron, regarded as one of the world's top three memory semiconductor companies alongside Samsung Electronics and SK hynix, will be the first in the industry to report quarterly results. The consensus for Samsung Electronics' second-quarter operating profit, due next month in preliminary results, has been raised from 84.054 trillion won a month ago to 87.157 trillion won recently. 
Na Jeong-hwan, a researcher at NH Investment & Securities, said, "Recent foreign investment banks are raising their second-quarter outlooks for semiconductor companies, reflecting rising prices amid continued memory bottlenecks," adding, "If Micron's results confirm the strong industry backdrop, the earnings visibility of large semiconductor stocks could stand out and the concentration of funds may continue."

nodelay@fnnews.com Park Ji-yeon Reporter