KOSDAQ tops 900 for first time in three months as chip suppliers lead
In short
The KOSDAQ index closed at 919.92 on Oct 6, up 2.98% and above 900 for the first time since July 1, while the KOSPI fell 0.89%. Semiconductor materials, parts and equipment makers have replaced biotech as the market's biggest sector by market value. Brokers quoted by Korean outlets advised selective buying of semiconductor stocks with earnings support given high interest rates.
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The KOSDAQ closed at 919.92 on Oct 6, up 2.98% from the previous session and above the 900 level for the first time since July 1, Chosun Ilbo reported. The KOSPI fell 0.89% the same day. Korea Economic Daily also reported that the KOSDAQ had recovered the 900 mark in three months, attributing the move to a rally in semiconductor materials, parts and equipment and secondary battery shares. [ 2 , 3 ]
The rebound was rapid. Chosun Ilbo reported the index had been below 800 in early October and had risen more than 11% over the past month. The gain did not hold on Oct 7: Hankook Ilbo reported the KOSDAQ closed at 898.43, down 21.49 points or 2.34%, as profit-taking followed the previous day's advance. That level was still 39.3% above this year's low of 644.78. [ 1 , 2 , 4 ]
Behind the index move, the leadership of the market has changed. According to Korea Exchange data cited by Hankook Ilbo, semiconductor materials, parts and equipment companies made up five of the KOSDAQ's top 10 stocks by market capitalisation on Oct 7, up from one on Jan 2, while pharmaceutical and biotech companies fell to two from six, with LigaChem Biosciences and Peptron pushed out of the top 10. Among the top 50 companies, semiconductor suppliers' share rose to 40% from 28% and pharmaceutical and biotech companies' share fell to 28% from 40%. Their combined market values moved in opposite directions: semiconductor suppliers rose 148.9% to 91.6 trillion won, while pharmaceutical and biotech companies fell 42.0% to 58.98 trillion won. [ 4 ]
Jusung Engineering, a semiconductor front-end equipment maker, was cited as the clearest example, rising to fourth place by market capitalisation on Oct 7 from 60th on Jan 2, after its shares jumped 17.51% the previous day to rank third. Jung Woo-sung, an analyst at LS Securities, told Hankook Ilbo that semiconductor equipment revenue should recover in earnest from the second half as SK Hynix and ChangXin Memory Technologies expand memory investment. The paper also reported that Micron estimated capital expenditure of $25 billion for the first half of next year, close to this year's total of $27.4 billion, and that Samsung Electronics and SK Hynix were preparing large-scale expansions. [ 4 ]
Analysts quoted by Hankook Ilbo pointed to earnings rather than sentiment. Kim Rok-ho of Hana Securities said there is a clear move to find returns through materials, parts and equipment suppliers while memory makers' share prices recover slowly, adding that materials and consumables companies deserve attention. Na Seung-doo of SK Securities said KOSDAQ-listed companies' combined operating profit rose 62.4% year on year in the first half, arguing the market's earlier neglect was a matter of flows and investor interest. [ 4 ]
Brokerage advice relayed by Chosun Ilbo and Korea Economic Daily was selective rather than broad. With interest rates high, investors should focus on semiconductor stocks whose earnings support their prices, and should respond through materials, parts and equipment names, the outlets reported. [ 1 , 2 , 3 ]
Why it matters
The KOSDAQ's recovery is being driven by semiconductor materials, parts and equipment suppliers rather than the biotech names that long dominated the market, tying the index more closely to memory investment plans at Samsung, SK Hynix and Micron. For readers outside Korea, the shift is a signal about where chip supply-chain spending is expected to flow. The documents give no basis for judging how long the rally will last.
Key facts
- The KOSDAQ closed at 919.92 on Oct 6, up 2.98%, its first close above 900 since July 1. [ 2 , 3 ]
- The KOSPI fell 0.89% the same day. [ 2 , 3 ]
- The KOSDAQ had been below 800 in early October and rose more than 11% over the past month, Chosun Ilbo reported. [ 1 ]
- On Oct 7 the KOSDAQ closed at 898.43, down 2.34%, which was still 39.3% above this year's low of 644.78. [ 4 ]
- Semiconductor materials, parts and equipment companies rose to five of the KOSDAQ's top 10 stocks by market capitalisation from one on Jan 2, while pharmaceutical and biotech companies fell to two from six, according to the Korea Exchange. [ 4 ]
- Among the top 50 companies, semiconductor suppliers' combined market value rose 148.9% to 91.6 trillion won while pharmaceutical and biotech companies' value fell 42.0% to 58.98 trillion won, the exchange data showed. [ 4 ]
- Brokerages advised investors to focus on semiconductor stocks with earnings support given the high interest rate environment. [ 1 , 2 , 3 ]
Confirmed by several sources
- The KOSDAQ rose above 900 in early October for the first time in about three months. [ 1 , 2 , 3 ]
- The Oct 6 KOSDAQ close was 919.92, a gain of 2.98% from the previous session. [ 2 , 4 ]
- The KOSPI moved lower on Oct 6, with Chosun Ilbo reporting a 0.89% decline and Korea Economic Daily describing a weak close in the 6900s. [ 2 , 3 ]
- Brokerages recommended concentrating on semiconductor-related KOSDAQ stocks with earnings backing rather than buying the market broadly. [ 1 , 2 , 3 ]
Still unclear
- How long the KOSDAQ rally will continue. The documents quote analysts recommending specific sectors but none forecasts the index's direction; Chosun Ilbo frames the question as open, and the KOSDAQ fell 2.34% on Oct 7.
- Micron's planned capital expenditure of $25 billion for the first half of next year, against $27.4 billion for all of this year, and the scale of Samsung Electronics' and SK Hynix's expansion plans. These figures appear only in the Hankook Ilbo report, sourced to an LS Securities analyst and company plans, and are not confirmed by another document.
What local media are saying
Timeline, local time
- Chosun Ilbo reports the KOSDAQ has risen more than 11% in a month to above 900, from below 800 in early October. [ 1 ]
- Chosun Ilbo reports the KOSDAQ closed on Oct 6 at 919.92, up 2.98%, above 900 for the first time since July 1, while the KOSPI fell 0.89%. [ 2 ]
- Korea Economic Daily reports the KOSDAQ has recovered the 900 level in three months, with brokerages pointing to semiconductor materials, parts and equipment. [ 3 ]
- Hankook Ilbo reports the KOSDAQ closed on Oct 7 at 898.43, down 2.34%, after semiconductor equipment stocks displaced biotech in market-cap rankings. [ 4 ]