[Click e-Stock] "Won Weakness and Stock Rally... Upward Momentum of Leading Stocks Is Key"

There is an analysis suggesting that, for the continued simultaneous rise of the Korean won's weakness and the KOSPI, it is crucial for leading stocks such as Samsung Electronics and SK Hynix to maintain their upward momentum.

On October 14, Kim Dooun, a researcher at Hana Securities, stated, "The global economy has entered an expansion phase, and increased liquidity is supporting this trend."

Researcher Kim focused on the "improvement of export profitability" resulting from the weak won. He said, "Recently, the positive impact of the weak won on the stock market outweighs the negative factors," and added, "Since the launch of the second Trump administration, uncertainties over mutual tariffs have increased, making price competitiveness crucial for Korean exports until tariff burdens are reflected in final prices."

He continued, "As the weak won has persisted since April, foreign investors have continued to make net purchases of Korean assets," and reported, "Since then, foreign investors have made net purchases of 4.4 trillion won worth of domestic stocks and 35 trillion won worth of domestic bonds, respectively."

Accordingly, he projected that the KOSPI index will continue its upward trend, supported by the global economy, liquidity, and improvements in corporate earnings. Researcher Kim explained, "Currently, the stocks leading the Korean market are semiconductor-related stocks," and added, "Historically, when the top two stocks by market capitalization have increased their share, the KOSPI index has risen by an average of 10%."

He also noted, "Since the beginning of this year, the combined market capitalization share of Samsung Electronics and SK Hynix has increased by 6.8 percentage points," and "the operating margin outlook for the KOSPI semiconductor sector is about 20%." He emphasized, "A significant increase in operating margin is a clear factor for stock price growth," and "It is time to prepare for the era when the combined market capitalization of the top two companies reaches 1,000 trillion won."

Regarding concerns over the US-China tariff war, he assessed that it could serve as an "investment opportunity arising from a temporary adjustment." Researcher Kim said, "Ahead of the Asia-Pacific Economic Cooperation (APEC) summit at the end of this month, the US-China tariff war is reigniting," and added, "Relatively, China's economy remains sluggish, and the approval rating of the Trump administration in the US continues to decline. Although there may be ups and downs, the likelihood of a resolution is higher."