In July, semiconductor stocks have plummeted, leading to a decline in large-cap stocks, while small and mid-cap stocks, particularly thematic and cosmetic shares, have seen significant gains.
According to the Korea Exchange on July 18, the KOSPI large-cap index fell by 20.6% from the start of the month through the 16th. This decline was steeper than the overall KOSPI index, which dropped by 19.5% during the same period.
In contrast, the KOSPI mid-cap index decreased by 6.2%, and the small-cap index fell by 1.6%, indicating a relatively stable performance.
This trend marks a shift from last month, when the KOSPI large-cap index rose by 0.9%, while mid-cap and small-cap stocks fell by 10.5% and 11.1%, respectively.
Market analysts attribute the recent changes to concerns over a peak-out in the semiconductor sector, which has increased volatility among major stocks like Samsung Electronics and SK Hynix. Additionally, a slowdown in foreign buying has prompted individual investors to turn their attention to thematic and small-cap stocks.
Indeed, Samsung Electronics has seen a decline of 23.7% this month, while SK Hynix has dropped by 30.5%. Samsung's stock price fell from 334,000 won at the end of last month to 255,000 won by July 16, a decrease of 79,000 won. Similarly, SK Hynix's price fell from 2,650,000 won to 1,842,000 won, a drop of 808,000 won during the same period.
Conversely, small-cap stocks have rebounded. Among small-cap stocks, so-called 'patriotic thematic stocks' have performed strongly. Hanseong Corporation has surged by 245% this month, while Monami and Enex have recorded increases of 211% and 162%, respectively.
In the mid-cap sector, cosmetic and food and beverage stocks have shown relative strength. Cosmax (17%), Amorepacific Holdings (15%), and Kolmar Korea (8%) have significantly outperformed the KOSPI index, while Orion Holdings (8%) and Lotte Wellfood (6%) have also posted positive returns.
* This article has been translated by AI.
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