[Edaily Reporter Kim Hyung-il ] Amid concerns over a peak-out in the semiconductor sector, the July stock market saw a sharper decline than during the 1997 IMF foreign exchange crisis; however, some stocks, such as oil refining and financial stocks, managed to post gains. Additionally, some of the top-performing stocks saw their prices surge nearly twofold after becoming “sold-out stocks” due to a reverse stock split.

According to the Korea Exchange on the 30th, among the top 50 KOSPI stocks by market capitalization from the 1st to the 30th of this month, the stock with the highest return was SK Innovation(096770), which rose 18.98%. It was followed by Meritz Financial Group(138040)(16.09%), WooriFinancialGroup(316140)(11.41%), KT&G Corporation (11.19%), and HMM(011200)(10.66%).

SK Innovation’s rise is believed to reflect improved profitability in its refining business and expectations for a recovery in SK On’s earnings. Meritz Financial and Woori Financial continued to benefit from expectations regarding shareholder return policies, such as increased dividends and the cancellation of treasury shares, while KT&G Corporation’s stock price was also driven up by stable earnings and expectations for shareholder returns. HMM’s performance is interpreted as having been positively influenced by expectations of an improvement in the shipping market. Another notable feature of this market trend was that stocks with relatively clear investment rationale—such as expectations of an industry recovery and shareholder return policies—ranked among the top performers.

The strength of financial stocks was particularly notable. Not only Meritz Financial and Woori Financial, but also HanaFinancialGroupInc.(086790)(7.04%), KB Financial Group(105560)(5.62%), and ShinhanFinancialGroup Co.,Ltd.(055550)(4.56%) all rose in tandem. This is interpreted as a shift in investor interest toward financial stocks—which have relatively stable earnings and have consistently pursued shareholder return policies—as AI and semiconductor-related stocks, which had previously led the market, underwent a correction. Additionally, improved earnings at financial subsidiaries, including securities firms, are analyzed to have contributed to this trend.

Ko Tae-bong, Head of Research at iM Securities, stated, “Financial firms stood out in terms of dividends and the earnings of their financial subsidiaries, while growth stocks—particularly those in the semiconductor sector—have seen many of their valuation premiums disappear.” He added, “This is a phenomenon observed not only on the U.S. Nasdaq but also on both the KOSPI and KOSDAQ.”

Lee Jin-woo, Head of the Research Center at EUGENE INVESTMENT & SECURITIES, analyzed, “The July market was one in which accumulated doubts were suddenly brought to the surface.” He added, “Doubts about whether the AI investment cycle could continue led to fear through various channels, causing the market to suffer a sudden shock.”

In contrast, on the KOSDAQ, not a single stock among the top 50 by market capitalization posted a monthly gain. The stock with the smallest decline was PharmaResearch(214450)(-5.05%), followed by SILICON 2 Co.,Ltd.(257720)(-7.03%), PearlAbyss Corp.(263750)(-14.97%), Hugel, Inc.(145020)(-18.21%), and CLASSYS Inc.(214150)(-21.77%). Analysts suggest that the sharp decline was driven by profit-taking, particularly in stocks that had previously reflected high growth expectations.

However, some stocks continued to perform strongly. On the KOSPI, YOUNGWIRE(012160)(72.22%), STX Green Logis(465770)(52.97%), Enex(011090)(41.90%), DaeguDepartmentStore(006370)(40.89%), and HansungEnterprise(003680)(38.72%) posted significant gains. On the KOSDAQ market, stocks such as SAMBO Industrial Co., Ltd.(009620)(93.33%), #VECT Co., Ltd. (80.90%), ICH Co., Ltd.(368600)(76.49%), ITEYES Inc.(372800)(75.47%), and #LSKiRobot (61.62%) posted returns significantly above the market average.

Forecasts suggest that August will be a period of assessing whether the AI investment cycle is continuing. Center Director Lee predicted, “We are now entering a phase of confirming that the AI investment cycle has not ended,” adding, “Through NVIDIA’s earnings announcement at the end of August and memory demand trends, the market will seek to reconfirm whether the AI investment cycle is continuing.”