"Heading to 10,000," but Beware of Polarization and Volatility

[Anchor]

The KOSPI has reached the 9,000 mark. What lies ahead?

We continue our discussion with Kim Hye-min from the Business Desk.

Q. How far will the KOSPI go?

[Reporter Kim Hye-min: It was only a month and a half ago that the prediction of the KOSPI hitting 9,000 was first made. While it is difficult to predict exactly what will happen next, the consensus in the securities industry is that it will likely reach 10,000 points this year without much trouble. Meritz Securities has projected 11,500, Korea Investment & Securities expects 11,000, and global investment bank Goldman Sachs has raised its target from 9,000 to 12,000. Although there is a trend of interest rate hikes and lingering burdens from wars, the prevailing view is that the momentum will not easily break due to strong demand for AI investment and semiconductor earnings.]

Q. Why are foreigners buying net?

[Reporter Kim Hye-min: The main drivers of the KOSPI this year have undoubtedly been individual investors, who have recorded 73 trillion won in net buying so far this year. However, foreign influence was also significant in the rally from 8,000 to 9,000. Since the 12th, they have continued to record net buying, with the exception of yesterday (June 17). The KOSPI has also been on a six-day winning streak since the 11th. The securities industry believes this is largely due to foreign investors returning to the domestic market after the completion of the SpaceX public offering process in the U.S. stock market.]

Q. Concerns over polarization and volatility?

[Reporter Kim Hye-min: I often hear this from people around me these days: "The KOSPI is rising endlessly, so why is my stock in the red?" Samsung Electronics and SK Hynix account for more than half of the total market capitalization. Even today, as the index surpassed 9,000 points, only about 100 stocks rose, while nearly 800 declined. The KOSDAQ is in a similar situation, with 5.8 times more stocks falling than rising. Furthermore, as a small number of large-cap stocks dictate the entire index, volatility itself is increasing. In particular, a significant amount of money has flowed into leveraged products for Samsung Electronics and SK Hynix, which were listed late last month, with their total market capitalization exceeding 9 trillion won. This has raised concerns about overheating and volatility. When the KOSPI fell consecutively early this month, the loss rate approached 40%, and price discrepancies occurred as they failed to reflect the actual stock value. The Financial Supervisory Service has also issued a consumer alert for these products. The won-dollar exchange rate, which remains stubbornly high, is also bound to be negative for the continued inflow of foreign investors.]
※ Please note: This article was translated by AI and may contain errors.