South Korea's Stock Market Sees a Pause in the Semiconductor Sector Rally, Leading to Sector Rotation as Non-Semiconductor Industries Experience a Value Reassessment

August 10th. Today, a South Korean exchange announced data showing that semiconductor heavyweights have recently experienced a pullback, and funds have begun to rotate towards the non-semiconductor sector. From August 3rd to 7th, Samsung Electronics fell by 12.00%, SK Hynix fell by 17.23%, while during the same period, the KOSPI index fell by 5.10%; however, sectors such as metals and machinery equipment saw a counter-trend rally.

Currently, the market capitalization of Samsung Electronics and SK Hynix in the KOSPI index has dropped from 58.9% on June 25th to 46.3% on August 7th. Meanwhile, excluding these two companies, the KOSPI's net profit forecast for this year has been revised up from last week's 219.2 trillion Korean won to 222.3 trillion Korean won, indicating that the market's profit improvement is further supporting the valuation recovery of the non-semiconductor sector. KB Securities researcher Kim Minkyu stated that the current situation of "semiconductor consolidation, other industries on the rise" is more akin to industries that were previously overlooked by the market taking advantage of the revaluation opportunity during the rest period of the leading sector, rather than a mere broad-based market uptrend. (FNNews)