Fear of R Hits Vacation Season... Focused Trading on Semiconductor and Defense Stocks

Top 10 Stocks by Trading Value from August 1 to 16
1st Place: Samsung Electronics and Alteogen respectively

In early August, when the fear of a recession (R) in the US overshadowed global stock markets, the most actively traded sectors on the Korea Exchange were semiconductors and defense industry stocks. This increase in trading volume appears to be due to investors either selling large amounts of domestic semiconductor stocks following the recent sharp decline in US tech stocks or buying them as a low-price opportunity. On the KOSDAQ market, there was a notable increase in trading volume for pharmaceutical and bio stocks such as Alteogen, Labgenomics, HLB, and Wooree Bio.

According to FnGuide on the 22nd, among the top 10 stocks with the highest cumulative trading value on the Korea Exchange from August 1 to 16, five were semiconductor and defense stocks. The others were large-cap stocks favored by foreigners or those that posted surprise earnings in Q2. Individually, Samsung Electronics had the highest trading value during this period at KRW 21.420787749 trillion, followed by SK Hynix at KRW 14.44516387 trillion. Hanmi Semiconductor also ranked fifth with a trading value of KRW 2.3363526 trillion.

On August 5, a 'Black Monday' crash occurred, affecting stock markets in the US, Europe, and Asia. The combination of US recession fears and a sharp decline in US tech stocks caused the markets to plunge. The KOSPI fell by 8.77%, marking the largest drop in history. After recession concerns eased and US tech stocks showed signs of recovery, investors appeared to view the price drops in semiconductor leaders such as Samsung Electronics, SK Hynix, and Hanmi Semiconductor as buying opportunities. This year, Samsung Electronics peaked at KRW 87,800 on July 10 but fell to KRW 71,400 on August 5, while SK Hynix rose to KRW 241,000 on July 24 before plunging to KRW 156,100 on August 5.

Trading value for defense stocks also surged significantly. Defense-related stocks such as Hanwha Aerospace (KRW 2.41829586 trillion) and Hyundai Rotem (KRW 1.85823237 trillion) ranked high in trading value. Although Hanwha Aerospace and Hyundai Rotem ranked 25th and 58th in market capitalization respectively, their trading values ranked 4th and 8th overall. This is interpreted as strong buying interest driven by solid Q2 earnings. Additionally, investors actively traded stocks like Celltrion (KRW 2.97336142 trillion), HD Hyundai Electric (KRW 2.14332963 trillion), Hyundai Motor (KRW 2.13127291 trillion), and Korea Gas Corporation (KRW 1.66874410 trillion). The rise in US tech stock prices increased investor interest in domestic electric wire and power stocks.

On the KOSDAQ market, Alteogen (KRW 3.49385141 trillion) had the highest trading value. Trading was concentrated in pharmaceutical and bio stocks such as Labgenomics (KRW 2.08317444 trillion), HLB (KRW 1.32449505 trillion), and Wooree Bio (KRW 1.22643635 trillion). As the period of interest rate declines became clearer, the pharmaceutical and bio sectors were expected to benefit, leading investors to view early August as a low-price buying opportunity and increasing capital inflows.

Lee Geon-jae, a researcher at IBK Investment & Securities, stated, "As concerns about a US recession intensify, pressure for interest rate cuts will increase, further raising investor interest in the bio industry." Geopolitical tensions in the Middle East caused international oil prices to surge, leading to active trading in Heungkuk Oil. Heungkuk Oil ranked third in trading value in early to mid-August, and Silicon투, which posted strong Q2 earnings and received favorable reviews from securities firms, also ranked high in trading value. Despite recent anxiety over electric vehicle fire issues, trading in EcoPro BM and EcoPro remained steady. However, although EcoPro BM and EcoPro are the first and third largest companies by market capitalization on KOSDAQ, their trading values ranked only sixth and tenth overall.