KOSPI recovers to 7,000, yet individual investor exodus accelerates amidst semiconductor concentration and component stock underperformance.
Currently, both markets started on an upward trend and are maintaining positive performance, with KOSPI recovering to 7,000, showing strong momentum. However, a closer look at the market reveals that the number of rising stocks is fewer than declining stocks. This phenomenon suggests that despite the index's rise, many investors perceive low returns.
Despite the index rebound, individual investors' inclination to exit the market is intensifying. This is because, even with the index recovering, individual investors feel minimal returns, leading to a wave of disappointed selling. Some investors are moving funds to alternative investments like dividend stocks or gold, revealing a skeptical view of the current market.
It seems a considerable number of people are selling, deciding to just cut their losses here.
Samsung Electronics and SK Hynix have seen their share of KOSPI's market capitalization rise back to 50% due to an influx of demand and stock price increases. This concentration of supply towards the two semiconductor leaders is being compared to past periods of market overheating, reigniting concerns about semiconductor market concentration. Some argue that this concentration could undermine the overall health of the market.
The current concentration in semiconductors is considered less intense and slower than past overheated periods. This can be partly attributed to efforts to manage single-stock leverage. Additionally, with the spread of artificial intelligence (AI) and data centers, market-leading sectors are becoming more diversified than in the past, serving as a factor in preventing excessive concentration in any specific sector.
The fact that the AI cycle is still ongoing and not yet over is a positive factor. Furthermore, matters related to shareholder returns contribute to increasing corporate value, which is interpreted as a positive signal rather than a negative one for the market.
Doosan Enerbility ranked third among stocks with high institutional net buying, but foreign investors are showing contradictory behavior by selling this stock. This divergent investment strategy is analyzed as stemming from differences in time perspectives between supply-demand entities. Institutions are investing in the nuclear power sector's long-term growth potential, while foreigners may be taking a selling position considering short-term market trends or other factors. A clear difference in perspective between institutions and foreigners is evident regarding Doosan Enerbility's direction amidst policy support for the nuclear power industry and the global energy transition.
It is suggested that investors observe the situation rather than taking immediate action. However, if the macroeconomic environment changes positively and short-term headwinds are resolved, there is an expectation that Hyundai Motor's stock will rise again.
I don't think there's any need to take immediate action right now, that's how I see it.
This is influenced by global industry conditions and is also related to the sideways movement of Japan's Murata Manufacturing stock. For component-related stocks to gain significant upward momentum, clear catalysts such as concrete price increases need to be confirmed.
As seen in the past case where Taiwan's Nanya Technology failed to increase prices, actual price increases are crucial. There is a possibility of additional price increases in the second half of the year, and if these movements are confirmed, component-related stocks could see a resilient rebound.
Expectations for orders related to data centers and mega-projects are rising, drawing attention to its future growth potential.
Samsung E&A has shown a steady increase in its order backlog in the first half of the year. In the short term, movement may be limited within its trading range, but if a breakout from this range is confirmed, it is expected to advance to the next level. This is highly likely to be synchronized with the overall upward trend of construction stocks.
It is necessary to secure a cash position in preparation for volatility due to major economic events such as the Consumer Price Index (CPI) to be released later in the week. This is not about indiscriminate selling but rather reducing an excessively high stock proportion. Additionally, it is recommended to refrain from excessive chasing of the market and to invest cautiously.
Answers come from the transcript, with the exact spot cited.
Want the next article from 매일경제TV?
When 매일경제TV publishes, we'll write it up like the one you just read and email it to you.
매일경제TV published 249 in the last 7 days.
