The KOSPI index surged again a day after crossing the 3000 line. On the 8th, the KOSPI index ended at 3152.18, up 3.97%. The photo shows a dealing room at Hana Bank in Euljiro, Seoul right after the closing of the market. Reporter Huh Moon-chan [email protected] “/>
The KOSPI index surged again a day after crossing the 3000 line. On the 8th, the KOSPI index ended at 3152.18, up 3.97%. The photo shows a dealing room at Hana Bank in Euljiro, Seoul right after the closing of the market. Reporter Huh Moon-chan [email protected]
Stock prices are breaking record highs every day. Individual funds continue to flow into the stock market, and foreigners have also started buying. News from overseas added momentum to the rising stock price.
The KOSPI index surged 3.97% on the 8th, closing at 3152.18. This is the largest increase since June 16 (5.28%) last year when the stock market, which had plunged due to Corona 19, rebounded sharply. All stocks rose from Samsung Electronics, which ranked first in the market capitalization, to LG Household and Health Care, which ranked 16th.
Foreign investors led the stock price to rise by buying about 1.6 trillion won worth of net purchases in the securities market. It is the largest in about 10 years after net purchase of 1.72 trillion won on July 8, 2011.
Various news that erupted served as a good news. Bloomberg News reported that Morgan Stanley Capital International (MSCI) decided to exclude China Mobile, China Telecom, and China Unicom from its major index from the end of the market. Donald Trump is a group of companies on the US administration’s investment ban blacklist. The money from the sale of the stock has flowed into the Korean market, market experts said.
Large stocks soared. Shares of Hyundai Motor Company (19.42%) Hyundai Mobis (18.06%) and Hyundai Wia (21.33%) surged on the news that Apple could cooperate with Hyundai Motor to make an electric car. In the news that TSMC, a Taiwanese foundry (consigned semiconductor production) company, is delaying the development of 3 nm (1 nm = 1 billionth of a meter) process technology, its rival Samsung Electronics’ share price rose 7.12% to 86,800 won.
Lee Kyung-soo, head of Meritz Securities Research Center, said, “As Korea’s industrial portfolio has been reorganized into a structure suitable for the future, the stock market is receiving a new evaluation.” It is not appropriate to judge whether or not.”
KOSPI surpassed 3100
Half the KOSPI market cap of 4 major groups
Some say it’s “crazy”, and some say it’s scary. Analysts who forecast and analyze the stock price can only explain that it is a “psychological shift.”
The stock price broke through the 3150 line two days after it hit 3000. Large-cap stocks such as Hyundai Mobis are hitting the ceiling, and Samsung Electronics’ market cap is increasing by tens of trillion won a day. Experts say that it was the first time since the dot-com bubble in 1999 that it has seen a rebound after a plunge in stock prices, but it has risen considerably.
As the stock price of large-cap stocks soared, the market caps of the four major affiliates have far exceeded 50% of the total securities market, creating various records. Various good news that stimulate large stocks are also pouring out.
Reports of the top stocks of the market capitalization
On the 8th, Samsung Electronics ended at 88,800 won, up 7.12%. The all-time high price march continues. Based on the closing price, the market cap of common stocks alone exceeded 500 trillion won for the first time. It amounted to 530 trillion 116.7 billion won. It has been about a month and a half since it exceeded 400 trillion won at the end of November last year. SK Hynix, the second place in the market cap, also surpassed 100 trillion won. This year alone, it surged 16.45%. To date, only these two companies have surpassed 100 trillion won in market capitalization.
A new name was added to the club with a market cap of 50 trillion won. Hyundai Motor Company, Naver, and Samsung SDI are the main characters. Hyundai Motor Company again stepped on the market cap of 50 trillion won in about 10 years. Apple, which is preparing to launch a car, closed the deal at 246,000 won, a 19.42% increase on the news that it is in discussions with Hyundai. In one day, it rose from 8th to 5th in the market capitalization of the securities market (excluding preferred stocks). Naver, which has undergone an adjustment since September last year, surged 7.77%, surpassing the market cap of 50 trillion won again following September last year.
This is the first time that Samsung SDI has exceeded the market cap of 50 trillion won. Along with the rise in secondary battery stocks, it has increased by 32% over the past two weeks. “Samsung SDI is expected to win aggressive orders this year,” said Kim Chul-joong, a researcher at Mirae Asset Daewoo. “As the electric vehicle and energy storage system (ESS) market grows, the performance will improve rapidly.”
The share of the four major groups Samsung, Hyundai Motors, LG and SK in the securities market has increased significantly. The market cap share of the four major groups increased from 47% at the end of 2018 to 56% on this day. The share of the entire Korean stock market is also close to half.
This is due to the concentrated buying trend on large-cap stocks. Until the 7th of this year, individuals net bought 3,493.6 billion won in the stock market. Only Samsung Electronics bought 2 trillion won worth. In addition, large-scale growth stocks such as LG Electronics (523.8 billion won), SK Biopharm (381.3 billion won) and Celltrion (120.7 billion won) were put into the account. During the same period, foreigners led a rise in the stock market of top-tier stocks by net buying LG Chem (364.5 billion won), Hyundai Motors (2633 billion won), Kakao (258.8 billion won) and SK Hynix (2472 billion won). The institution sold more than 3 trillion won in net sales.
Kim Gwang-hyun, a researcher at Yuanta Securities, said, “It seems that the’big hands’ who became free from the requirements of large shareholders began to buy again after the turn of the year. “There is.”
Even if it exceeds 1 million won per week
Events exceeding 1 million won also appeared. LG Chem recorded 1016,000 won during the week. Based on the closing price, only 1.2% is left up to the securities firm’s target price of 1,1850 won. The market cap exceeded 70 trillion won. Thanks to the overall strength of game stocks, NCsoft also touched 1 million won during the week. Previously, LG H&H was the only stock with a share price exceeding 1 million won.
Kakao’s share price, which had been sideways after the coronavirus rebound, also rebounded. On that day, it surged 7.83%, recording a record high. The day before, it surpassed 400,000 won per week for the first time and reached the 430,000 won level. The target price continues to rise. Lee Min-ah, a researcher at Daishin Securities, who recently raised Kakao’s target price to 530,000 won, said, “As most business divisions maintain solid performance, operating profit will increase by 70% this year.” The value has also increased.”
Boundary theory is slow
In the wake of the surge in large-cap stocks, there is also an atmosphere that has slowed down. This is because the bull market continues not only in Korea but also around the world. Experts believe that the flow of liquidity is likely to influence the future stock price. Kim Hak-gyun, head of Shinyoung Securities Research Center, said, “It seems likely that funds will continue to move to the stock market, but if the speed drops, there may be an adjustment.”
Jaeyeon Ko/Hankyung Economic Daily [email protected]