KOSDAQ performs well amid sluggish KOSPI support... Recapture of ‘Cheonsdaq’ is not possible

(Seoul = Yonhap News) Reporter Kwak Yuna = Recently, the KOSDAQ market has shown relative strength compared to the KOSPI, and investor interest is growing.

However, considering the high level of market interest rates, many analysts say that it is premature to expect a recovery of the '1000 SDAQ'.

According to Yonhap Infomax, a financial information company, on the 10th, the KOSDAQ index rose 4.24% this month.

The index returned to the 1,000 level last June and then fell to the 600 level at the end of July.

Afterwards, it gradually showed an upward trend, and on the 6th of this month, it rose to 900 based on the closing price for the first time in about 3 months.

Samsung Electronics [005930] Around the 3rd quarter earnings announcement (8th), caution was highlighted throughout the stock market and it returned to the 900 level, but compared to KOSPI, it is doing well.

The monthly increase rate of the KOSDAQ index was 15.91% and 2.59% in August and September, respectively.

The KOSPI index rose only 3.4% and 0.26% in August and September, respectively, and fell 3.1% this month.

KOSDAQ's performance was thanks to the rapid progress of stocks related to semiconductor materials, components, and equipment.

Looking at the fluctuation rate from August, when KOSDAQ turned upward on a monthly basis, to the 8th, Jusung Engineering [036930] rose 114.86%.

Other semiconductor stocks also surged, including SFA Semiconductor [036540] (137.78%), PSK Holdings [031980] (114.21%), and HPSP [403870] (86.71%).

The KOSDAQ market stands out even more when looking at the transaction amount, which can gauge the market atmosphere.

The average daily trading value of KOSDAQ this month was 8.6943 trillion won, an increase from August (5.9868 trillion won) and last month (7.697 trillion won).

On the other hand, KOSPI's average daily trading value is decreasing from 25.846 trillion won in August to 21.3604 trillion won last month and 19.8355 trillion won this month.

However, many analyzes say that it is difficult to expect a rise sufficient for KOSDAQ to regain the 1,000 mark, given that the strength of KOSDAQ is not based on fundamental improvement of listed companies.

Kim Jae-seung, a researcher at Hyundai Motor Securities, said, "(In terms of supply and demand), foreigners are empty and individuals are also taking a wait-and-see approach, so the general trend recently is to invest in light stocks rather than heavy stocks (such as large-cap stocks). Meanwhile, interest in semiconductor small and medium-sized stocks, which were relatively neglected in the semiconductor rally in the first half of the year, seems to have grown."

“However, it will not be easy for (this trend) to continue steadily,” he said. “There is no change in profits or investment sentiment that can be called fundamentals.”

Heo Jae-hwan, a researcher at Eugene Investment & Securities, said, "There is a possibility that KOSDAQ will be slightly better than KOSPI throughout the fourth quarter." The reason for this is, "Foreigners are not buying the Korean market hard, and individuals who have financial resources and can buy at low prices are being highlighted, so the KOSDAQ market, which emphasizes individual investors, seems to be slightly better."

There is also an analysis that it is not easy for interest in semiconductor investment stocks to expand to other industries in an unfriendly investment environment such as high market interest rates.

Researcher Heo explained, “As interest rates are so high, it seems to be a burden on small and medium-sized stocks.”