Clipart Korea
Robot-related stocks are emerging as the new market leaders on Korea’s stock exchange as the recent rally in semiconductor shares takes a breather. Hyundai Motor (005380.KS) and LG Electronics (066570.KS), which have fueled robotics expectations, have surged sharply, lifting returns on related exchange-traded funds (ETFs).
According to the Korea Exchange on Tuesday, shares of Samsung Electronics (005930.KS) and SK hynix (000660.KS) rose 0.74% and 7.89%, respectively, between the 11th and 15th of this month. The pace marks a notable slowdown compared with gains of 21.77% and 31.10% the previous week.
In particular, on the 15th of this month, Samsung Electronics and SK hynix tumbled 8.61% and 7.66%, respectively, showing signs of a short-term correction. Foreign investors took profits during the same period, net selling 8.2814 trillion won worth of Samsung Electronics and 9.8767 trillion won worth of SK hynix.
The correction in chip stocks was also reflected in group ETF returns. KODEX Samsung Group and TIGER Samsung Group, which carry heavy weightings of Samsung Electronics, fell 0.42% and 1.08% last week, respectively. Samsung Electronics accounts for around 35% of each ETF.
In contrast, Hyundai Motor and LG Electronics surged 14.19% and 56.07%, respectively, during the same period on rising expectations for the robotics industry. Hyundai Motor broke through the 700,000 won mark for the first time in intraday trading on the 13th of this month, while LG Electronics set a new record high even amid a sharp KOSPI sell-off.
Foreign investors also net sold Hyundai Motor and LG Electronics, but retail investors led the buying. Individuals net bought 318.8 billion won worth of Hyundai Motor and 154.2 billion won worth of LG Electronics last week.
Strength in flagship affiliates has also boosted group ETF returns. TIGER Hyundai Motor Group Plus, which has a 33.96% weighting in Hyundai Motor, rose 7.96% last week, while TIGER LG Group Plus, with a 22.46% weighting in LG Electronics, climbed 10.47%.
Securities analysts said the semiconductor sector remains the core market leader on Korea’s stock exchange, but rotation is appearing due to the burden of short-term gains and various domestic and external variables. With events such as Samsung Electronics’ labor-management negotiations and the U.S.-China summit ahead, investors have taken some profits, shifting funds toward previously overlooked robot stocks, they explained.
“The semiconductor sector continues its strong earnings-based upward trend, but maximized concentration is a burden factor,” said Ahn Hyun-guk, an analyst at Hanwha Investment & Securities. “In the second half, funds are likely to rotate from semiconductors to non-semiconductor sectors.”
Yang Seung-yoon, an analyst at Eugene Investment & Securities, said, “The robot industry is now entering the early mass-production stage of humanoids. As in the early days of the artificial intelligence (AI) industry, component companies are likely to benefit first for the time being.”
This Kind of Bureau Chief, That Kind of Stock