Market Preview: Volatility Expected After Recent Gains as KOSPI Eyes Market Cap Battle

KOSPI closed slightly higher at the 9,100 level on June 22. [Photo=Yonhap News]

The KOSPI is expected to continue its volatile trading on June 23, following the decline in major U.S. tech stocks and ongoing interest rate pressures. Additionally, the market may see increased fluctuations in supply and demand as Samsung Electronics and SK Hynix compete for the top spot in market capitalization.

On June 22, the KOSPI rose by 62.13 points (0.69%) to close at 9,114.55. Notably, SK Hynix surged by 5.61%, surpassing Samsung Electronics to claim the top position in KOSPI market capitalization. As of the close, SK Hynix's market cap stood at 2,080.3782 trillion won, while Samsung Electronics had a market cap of 2,066.6594 trillion won (excluding preferred shares).

In pre-market trading on NXT at 8:35 a.m., SK Hynix was trading at 2,971,000 won, up 52,000 won (1.78%) from the previous session. Meanwhile, Samsung Electronics was up 1,500 won (0.42%) at 355,000 won. SK Square also saw a significant increase, trading at 2,228,000 won, a rise of 13.1%.

Han Ji-young, a researcher at Kiwoom Securities, stated, "There is potential for further gains in the KOSPI, particularly in the semiconductor sector. However, a power struggle for market cap leadership between these companies is likely to unfold." He added that this competition could lead to increased volatility in other sectors or the KOSDAQ market.

Downward pressure on the KOSPI remains a concern. U.S. markets closed mixed overnight. Although international oil prices fell due to progress in negotiations for a peace agreement between the U.S. and Iran, major tech stocks struggled, leading to declines in the S&P 500 and Nasdaq indices.

On June 22 (local time), the Dow Jones Industrial Average rose by 0.3% to close at 51,712.71. In contrast, the S&P 500 fell by 0.4% to 7,472.79, and the tech-heavy Nasdaq Composite dropped by 1.3% to 26,166.60. The Russell 2000 index, which focuses on small-cap stocks, increased by 0.8% to 3,004.40.

One analyst noted, "The mixed factors surrounding the KOSPI include the weak performance of major tech stocks in the U.S., pressure from market interest rates, a strong performance in the Philadelphia Semiconductor Index, and falling oil prices. Today, the KOSPI is expected to start slightly higher, but additional upward pressure during the day may be limited."

* This article has been translated by AI.