Jan. 19 (Asia Today) — South Korea’s KOSPI has extended its sharp rise since the start of the year, but gains have been heavily concentrated in manufacturing and large-cap stocks, leaving many mid- and small-cap names lagging even within the same sectors, market data showed.
Korea Exchange sector indexes through Monday showed Transportation Equipment and Parts posting the strongest gain, up 36.04%, driven by advances in Hyundai Motor and Kia.
Hyundai Motor closed at 480,000 won (about $356) on Monday, up 16.22% from the previous session and up 61.9% for the year to date. Kia rose 12.18% to 169,500 won (about $126), bringing its year-to-date gain to 39.2%.
Other strong sector performers included machinery and equipment, up 24.38%, construction, up 23.46%, manufacturing, up 20.41%, and electrical and electronics, up 20.17%, the exchange data showed.
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By contrast, several consumer-oriented and materials sectors posted declines despite the broader rally. Textiles and apparel fell 4.05%, non-metals declined 3.31%, paper and wood slipped 3.01%, and food and tobacco edged down 0.26%.
In financials, the securities sector rose 16.38%, broadly tracking the KOSPI’s climb. Market watchers attributed the gain to higher trading volumes, improving earnings expectations and government policies seen as supportive of investors.
Insurance stocks slipped 0.12%, while financial holding companies gained 5.13%, the data showed.
The gap by company size was also pronounced. The large-cap index rose 16.60% year to date, while the small-cap index gained just 0.51%. The mid-cap index rose 5.17%, trailing the broader market.
Analysts said the concentration could persist. Shinhan Investment researcher Lee Sang-yeon said the KOSPI’s record-high run has been driven by a small number of stocks and that the market is more likely to see rotation within leading sectors than a sharp pullback of funds.
— Reported by Asia Today; translated by UPI
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