[Edaily Reporter Hyera Lee ] Since the beginning of this month, the concentration of investor interest in the “top two semiconductor companies”— SamsungElectronics(005930), and SK hynix(000660) —has intensified, leading to an increase in the share of trading volume these stocks account for on the KOSPI market.

According to the Korea Exchange on the 21st, the average daily trading volume on the KOSPI market this month stood at 514.27 million shares. This represents a 26.41% decrease compared to last month’s average daily trading volume of 698.79 million shares.
As trading activity declined, trading volumes for SamsungElectronics and SK hynix also shrank. SamsungElectronics’ volume fell from 34.6 million shares last month to 32.1 million shares this month, while SK hynix’s volume dropped from 6.21 million shares to 5.35 million shares.
However, the share of trading volume accounted for by these two stocks on the KOSPI market increased during the same period, as their decline was smaller than the overall decline in KOSPI trading volume. SamsungElectronics’ share of trading volume rose from 4.95% last month to 6.24% this month, while SK hynix’s share increased from 0.89% to 1.04%.
This is believed to be due to increased trading concentration on the top two semiconductor stocks since the start of this month.
Given the large market capitalization share of the top two semiconductor stocks and their related stocks within the KOSPI market, the likelihood of the index fluctuating significantly in response to price movements in these stocks has increased. The combined KOSPI market capitalization share of SamsungElectronics, SK hynix, SKSQUARE, SamsungElectronics(1P), Samsung Life Insurance, and SAMSUNG C&T CORPORATION amounts to 62.57%.
The securities industry pointed out that market volatility has increased as trading has become concentrated on specific stocks.
Han Ji-young, an analyst at KIWOOM Securities, said, “Since there are few alternative sectors with earnings and valuation appeal comparable to semiconductors, a strategy of increasing exposure to semiconductors is reasonable. However, in the short term, we believe there is growing pressure from the concentration of trading in these stocks and profit-taking following last week’s surge of over 10% in the KOSPI.”
Lim Jeong-eun, an analyst at KB Securities, also noted, “On the 19th, the KOSPI turned bearish due to heightened concerns over a potential breakdown in the ceasefire following the postponement of the signing ceremony between the U.S. and Iran, compounded by profit-taking pressure stemming from the concentration of trading in semiconductor stocks,” adding, “On that day, only 115 of the KOSPI’s 918 constituent stocks saw their share prices rise.”