Semiconductor Pullback Drives Rotation in Korean Stocks as Non-Chip Sectors Reprice

Data from the Korea Exchange on Tuesday showed a clear rotation in South Korea's stock market, with capital shifting away from semiconductor heavyweights into non-chip sectors. Samsung Electronics fell 12.00% and SK Hynix dropped 17.23% between Aug. 3 and Aug. 7, while the KOSPI index declined 5.10% over the same period. At the same time, metal and machinery stocks rose against the trend. The combined market cap of Samsung Electronics and SK Hynix as a share of the KOSPI has fallen to 46.3% as of Aug. 7, down from 58.9% on June 25. Excluding these two companies, the KOSPI's net profit forecast for this year was revised up to 222.3 trillion won from 219.2 trillion won last week, supporting a valuation recovery in non-semiconductor sectors. The current pattern, said KB Securities analyst Kim Min-kyu, is "closer to a re-rating of industries previously overlooked by the market while the leading sector takes a breather, rather than a broad-based rally." That distinction, he noted, points to selective value discovery rather than a general uptrend in equities. (FNNews)