The major contributor to the KOSPI index's highest rise among major national stock markets for the first half of this year was found to be SK hynix. Also, the stock prices of Doosan Enerbility, representing nuclear power, Hanwha Aerospace in defense, and Hyundai Rotem rose significantly, providing strong momentum for the stock market.
In contrast, the contribution of Samsung Electronics, the leading company in the KOSPI market and a semiconductor industry like SK hynix, was not significant.
According to the Korea Exchange on the 2nd, as of the end of June this year, the market capitalization (market cap) of KOSPI index constituent stocks was a total of 2,447.35 trillion won. This is an increase of 28.4% (54.148 trillion won) compared to 1,905.87 trillion won at the end of December last year. The KOSPI index's rise rate in the first half of this year ranked first among the G20 stock markets.
Excluding the four companies that were listed in the first half of this year—LG CNS, Seoul Guarantee Insurance, d'Alba Global, and CK Solution—we examined the proportion of individual stocks in the total market cap increase.
SK hynix was the clear leader. The market cap of SK hynix rose from 124.634 trillion won at the end of last year to 212.577 trillion won. It accounted for 16.6% of the KOSPI index market cap increase. The significant influx of foreign buying was largely influenced by SK hynix climbing to the top of the DRAM market, focusing on high-bandwidth memory (HBM), a core component of artificial intelligence (AI).
Next, ▲Samsung Electronics 6.7% (35.208 trillion won) ▲Doosan Enerbility 6.1% (32.246 trillion won) ▲Hanwha Aerospace 4.5% (23.538 trillion won) ▲Hyundai Rotem 3% (15.76 trillion won) ▲SK Square 2.6% (13.664 trillion won) ▲Hanwha Ocean 2.4% (12.747 trillion won) ▲Korea Electric Power Corporation 2.4% (12.672 trillion won) followed in market cap growth.
However, when considering the market cap proportions within the KOSPI index, the ranking of contributions to the index's rise changes. SK hynix's contribution was 5.9%, maintaining the top spot, but Samsung Electronics had a contribution of only 1.8%, placing it fifth. Doosan Enerbility (5.2%), Hanwha Aerospace (2.7%), and Hyundai Rotem (2.6%) displaced Samsung Electronics, taking the second to fourth positions.
Although Doosan Enerbility had a market cap share of 1.8% of the KOSPI index as of the end of June, its stock price surged by 289.7% in the first half of this year, significantly contributing to the KOSPI index rise. Hanwha Aerospace and Hyundai Rotem also had market cap proportions of 1.6% and 0.9% at the end of June, with their stock prices rising by 163.8% and 295.4%, respectively, in the first half.
On the other hand, Samsung Electronics, which had the largest market cap share of 14.5% in the KOSPI index by the end of June, posted a stock price rise of 12.4% in the first half of this year, falling short of the KOSPI index's growth rate. Consequently, its contribution to the index's rise was relatively weak.
Additionally, SK Square, Hanwha Ocean, Korea Electric Power Corporation, Mirae Asset Securities, and Kakao Pay were included among the top 10 stocks contributing significantly to the index's rise.
The strong market performance in the first half of this year showed differences from the time when the KOSPI index reached its all-time high (3316.08). During the period when the KOSPI index rose from its low to its high (from March 19, 2020, to June 25, 2021), Samsung Electronics contributed nearly 20%. It held a significant 21.9% share of the KOSPI index market cap, with its stock price soaring around 90%, driving the index rise.
Kakao and HMM also recorded double-digit percentage contributions. Unlike the past when stock price increases were concentrated among a few stocks, this time a comparatively larger number of stocks contributed to the index's rise.
On its first trading day, the KOSPI index continued its upward momentum, rising to 3133.52, breaking through previous peaks. Securities firms have set the upper band for the KOSPI index forecast range for the second half of the year at 3300-4000. However, many analysts warn of potential short-term corrections as the tariff suspension period announced by U.S. President Donald Trump is approaching its end.
There have also been recommendations to shift focus from export stocks, which had seen significant increases, to domestic stocks in sectors like construction and retail. Kang Hyun-ki, a researcher at DB Securities, noted, "From an investment strategy perspective, it is advisable to concentrate on domestic sectors rather than export sectors in the Korean stock market," adding, "The rising gap between short-term and long-term interest rates in Korea signals the possibility of improved performance in domestic sectors."