The domestic stock market has continued to show a range-bound trend since a sharp decline in July, with the number of stocks reaching limit-up prices and 52-week highs significantly decreasing compared to the beginning of the year. Although the KOSPI has surpassed the 7000 mark, the upward momentum has been limited across individual stocks.
According to the Korea Exchange, as of September 23, a total of 112 stocks finished trading at limit-up prices this month, including 17 on the KOSPI and 95 on the KOSDAQ.
This figure represents a 57% decrease from 261 stocks in July. Unlike the significant volatility seen in July, the recent market fluctuations have calmed down, leading to a rapid decline in the number of stocks reaching limit-up prices.
By market, the number of limit-up stocks on the KOSPI increased from 33 in January to 38 in February, and 47 in March. It continued to rise to 46 in April, 52 in May, and 56 in June, peaking at 68 in July. However, it dropped to 37 in August and further decreased to 17 this month.
The KOSDAQ market has shown a similar trend. The number of limit-up stocks reached a high of 223 in April but has since declined, falling to 140 in August and 95 this month.
However, it is not just the upward volatility that has diminished; there has also been a notable increase in downward pressure on stocks. This month, 14 stocks closed at limit-down prices, including one on the KOSPI and 13 on the KOSDAQ, surpassing the total of 12 limit-down stocks from the previous month. This is more than double the five limit-down stocks recorded in January.
There is a noticeable disparity between the index's rise and the performance of individual stocks. The KOSPI started the year at around 4000 and is now above 7000, but the upward trend has not been evenly distributed across the market. While some large-cap stocks have driven the index higher, the momentum for individual stocks remains relatively limited.
This trend is also evident in the number of stocks reaching 52-week highs. As of September 21, the number of stocks that closed at 52-week highs included 25 on the KOSPI in January, which surged to 207 in February as the KOSPI's upward momentum accelerated across various sectors.
Afterward, the numbers were 145 in April and 127 in May, but they plummeted to 31 in August and only 26 this month. The KOSDAQ market also saw a rapid decline in the number of stocks reaching new highs, dropping from 256 in April and 243 in May to 25 in July, with 44 in August and 42 this month.
Conversely, the number of stocks hitting 52-week lows has exceeded those reaching new highs. This month, 73 stocks on the KOSPI and 171 on the KOSDAQ closed at 52-week lows, significantly outnumbering those that reached new highs.
As the gap between the index and individual stocks widens, some analysts predict that the stock market will continue to exhibit a range-bound trend for the time being.
Kim Jun-young, a researcher at iM Securities, stated, "We expect the market to remain in a range around the 7000-point level for the time being. With semiconductor profit estimates stagnating, there is a lack of catalysts to push the market higher, and the accumulation of retail selling pressure and increased margin balances above 7500 points also heightens the risk of a pullback."
He added, "The lower end is likely to be supported by upward revisions in KOSPI earnings, excluding semiconductors. This is a period where stock and sector selection is more beneficial than betting on the index, and whether the market breaks out of the upper range will depend on when semiconductor profit estimates are revised upward again."
* This article has been translated by AI.
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