◆Aju Economy Top News
▷"Korea market sees only semiconductors"…70% of foreign buying flows to Samsung and SK Hynix; ETFs also dominated by chips
-Korea’s benchmark KOSPI has set a record and moved above 6,400, but the rally has been concentrated in semiconductor heavyweights such as Samsung Electronics and SK Hynix, fueling concerns about market crowding.
-Combined, the two companies now account for more than 40% of total market capitalization and have made up more than 55% of this year’s increase in KOSPI market value, effectively driving the index higher.
-This month, 41% of net institutional buying and about 70% of net foreign buying went into Samsung Electronics and SK Hynix, underscoring chip-centered flows.
-The trend has also spread to the ETF market, where products with large semiconductor exposure have grown quickly as asset managers roll out new funds and competition intensifies.
-A leveraged ETF tied to Samsung Electronics and SK Hynix is scheduled to launch next month, a move expected to deepen the concentration. Expectations for wider AI adoption and improved earnings have supported semiconductor strength.
◆Key Reports
▷Japan equity strategy: Focus returns to earnings [Shinhan Investment Corp.]
-Japanese stocks plunged after the U.S.-Iran war, then staged a swift V-shaped rebound to record highs as ceasefire talks advanced and risk appetite returned.
-The rebound followed a valuation reset and was led by markets with solid profit momentum. East Asian equities, including Japan, and semiconductor-led IT shares drove gains.
-Looking ahead, Japan’s market may be influenced by events including Bank of Japan policy, U.S.-Iran negotiations and earnings season, but the broader direction is expected to hinge on corporate results.
-Semiconductors, defense and banks are projected to account for about 61% of this year’s EPS growth, with expanding AI investment and government policy support reinforcing growth momentum in semiconductor-heavy IT.
-However, despite wage gains, improvements in consumption and retail indicators have been limited, while energy prices and external risks remain a burden, potentially delaying a broader rally into domestic-demand sectors.
◆Major disclosures after the close (22nd)
▷SK Hynix: 265.8 billion won cash dividend
▷LG Display: 1.1 trillion won investment in OLED infrastructure
▷Kyobo No. 16 SPAC: Trading halt to be lifted on the 23rd
▷Exchange: Trading halt for Ponylink shares
▷SI Resource: Shift to a co-CEO structure with Jeon Sun-ok and Choi Kyung-duk
▷Finger: Decision on a 30 billion won third-party allotment capital increase
◆Fund flows (as of the 21st, excluding ETFs)
▷Domestic equity funds: +21.4 billion won
▷Overseas equity funds: -10.3 billion won
◆Key events today (23rd)
▷South Korea: Consumer sentiment index (April), GDP growth rate (Q1)
▷United States: New home sales, Chicago Fed National Activity Index
* This article has been translated by AI.
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