The Reason KOSPI Is Volatile Is 'This'

Summary

Kim Jeong-hwan, Center Manager at Hana Securities Club1WM, analyzes the extreme concentration in the Korean stock market, where only 150 out of 2,700 stocks made positive returns over the past month. He attributes the outsized volatility to KOSPI's heavy reliance on memory semiconductors, particularly Samsung Electronics and SK hynix. He argues that the memory upcycle is intact, upcoming earnings should surpass high expectations, and the recent pullback is a buying opportunity for these must-own stocks.

• Only 150 stocks on KOSPI posted positive returns over the past month, with the top 150 being the cutoff.
• Among large-cap stocks gaining more than 10%, 17 of 23 were semiconductor names; department stores and beauty stocks also appeared.
• KOSPI is dominated by memory, with Samsung Electronics and SK hynix making up nearly 60% of market cap, making the index highly sensitive to memory sector news.
• Apple raised product prices and blamed memory costs, while Micron pushed back, signaling a power shift that now favors memory suppliers.
• The speaker expects strong Q2 earnings from Samsung Electronics and SK hynix, following Micron's blowout results.
• He advises that Samsung Electronics and SK hynix remain core holdings and that dips should be bought, despite elevated volatility.
• Post-earnings, select beaten-down non-semiconductor stocks that prove their fundamentals may also rebound.