Semiconductor Materials, Parts and Equipment Stocks Up 30% in a Month—Will They Help KOSDAQ Settle Above 900?

[Financial News] Semiconductor materials, parts and equipment stocks have pushed KOSDAQ to just below the 900 mark. Since last month, shares of 10 major materials, parts and equipment companies have risen by an average of more than 30%, with some surpassing or nearing brokerage target prices. Market attention is focused on whether the rally will continue ahead of Samsung Electronics' preliminary earnings announcement on the 8th. 
According to the Korea Exchange (KRX) on the 4th, the average gain over the past month among KOSDAQ's 10 largest semiconductor materials, parts and equipment stocks by market capitalization exceeded 30%. PSK Holdings posted the biggest gain at 55.13%, followed by Jusung Engineering (33.90%), Eugene Technology (32.63%), EO Technics (31.68%), and HPSP (30.48%), all of which rose by more than 30%. SIMMTECH gained 29.31%, while LEENO Industrial and ISC rose 26.58% and 21.53%, respectively. 
The 10 stocks recorded a combined trading value of 19.4366 trillion won during the period, accounting for 13.76% of KOSDAQ's total trading value of 141.2581 trillion won. Jusung Engineering recorded 6.0694 trillion won in trading value, ranking first among all KOSDAQ-listed stocks. WONIK IPS and HPSP ranked fourth and fifth, respectively, with 2.9148 trillion won and 2.9106 trillion won in trading value. Trading in board maker SIMMTECH totaled 2.1018 trillion won, while test-component maker LEENO Industrial recorded 1.3214 trillion won.
As share prices rose rapidly, some stocks also moved above their target prices. Comparing closing prices as of the 2nd with FnGuide's target prices, Jusung Engineering closed at 237,000 won, 7.73% above its target of 220,000 won. EO Technics closed at 532,000 won, near its average target price of 532,500 won. Eugene Technology closed at 176,800 won, 1.78% below its target of 180,000 won. HPSP closed at 65,500 won, 4.15% below its average target price of 68,333 won. By contrast, WONIK IPS and PSK still had upside potential of 11.95% and 28.95%, respectively, from their current prices to their average target prices. 
The market view is that customer capital expenditures must translate into actual orders, and order wins must be reflected in revenue and earnings, for the rally in semiconductor materials, parts and equipment stocks to continue. In particular, Samsung Electronics' preliminary earnings this week are expected to serve as a test of semiconductor industry conditions. Hwang Shin-hye, an analyst at LS Securities, said, "If Samsung Electronics' earnings beat consensus, the stock market could rise by the amount of the beat and downside could be contained. However, easing interest-rate and geopolitical risks is essential for immediate valuation expansion and a return to market leadership stocks," adding, "Given that KOSDAQ and the materials, parts and equipment segment benefit structurally and have low exposure to foreign investors' sustained selling, relative strength is still expected to continue." 
[email protected] Joo Won-gyu Reporter