2,276 out of 2,764 Stocks Decline
Concentration Intensifies in Large-Cap and Semiconductor Sectors
Small and Mid-Cap, Domestic Demand Stocks See Broad Losses
Although the domestic stock market continues to hit record highs day after day, a closer look inside the market reveals a reality that belies the term “bull market.” Most stocks are on a downward trend, except for a small number leading the index gains, and market sentiment is actually worsening, according to some assessments.
On the 28th, a dealer is working at the dealing room of the Seoul Hana Bank headquarters. Photo by Yonhap News
‘Funds Concentrated in Samsung Electronics and SK hynix… Majority of Stocks Decline’
According to the Korea Exchange, out of 2,764 stocks listed on KOSPI and KOSDAQ over the past month, 2,276 stocks (82.3%) declined. Only 378 stocks rose, while the remainder stayed flat.
The situation does not differ much by market. Over 80% of all KOSPI stocks fell, and a similar proportion of KOSDAQ stocks also declined. This means that the gap between index gains and individual stock performance has grown to an extreme degree.
This phenomenon is interpreted as the result of funds being concentrated in a few large-cap semiconductor stocks. Driven by expectations for increased investment in artificial intelligence (AI), semiconductor stocks centered around Samsung Electronics and SK hynix are leading the market. Over the past month, the KRX SK hynix Index surged by more than 70%, while the broader KRX Information Technology (IT) sector rose by over 40%. Samsung Electronics also posted a double-digit gain, contributing to the index’s rise.
While the semiconductor sector as a whole has displayed strength, outpacing the KOSPI’s rate of increase, the prevailing interpretation is that this is closer to a “selective rally” rather than a reflection of the overall market’s health.
On the 28th, dealers are working in the dealing room of the Hana Bank headquarters in Seoul. Photo by Yonhap News
Small and Mid-Cap, Domestic Demand Stocks Weaken Together… Disparity in Market Sentiment
In contrast, small and mid-cap stocks and sectors related to domestic demand have fallen across the board. The KRX Mid-Cap TMI Index dropped by 9.41%, the KRX Small-Cap TMI Index by 11.96%, and the KRX Micro-Cap TMI Index by 11.54%—all showing significant weakness.
By sector, the KRX Utilities Index fell by 18.65%, KRX Construction by 16.93%, KRX K-Content by 9.86%, KRX Energy & Chemicals by 9.71%, KRX Securities by 9.55%, and KRX Healthcare by 9.44%. The KRX Banks Index (-7.71%) and KRX Broadcasting & Communications (-6.18%) also performed poorly.
This is interpreted as a result of relatively weakened expectations for cyclical and domestic demand-driven sectors, with funds instead flowing into AI-related sectors that have a clear growth narrative.
The securities industry is characterizing the current market as a “rally without breadth,” focusing attention on the intensifying concentration. As inflows are focused on large-cap stocks, especially those related to AI semiconductors, there is growing relative deprivation and FOMO (fear of missing out) among investors who do not hold these stocks.
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Experts believe this concentration is likely to persist over the long term, pointing to past cases where the tendency for funds to cluster became more pronounced in the later stages of a bull market. At the same time, some caution that the moment when this concentration eases should be watched carefully, as it could signal not a healthy rotation with broad market gains, but rather the end of an overheated rally.
This content was produced with the assistance of AI translation services.
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