Korean Semiconductor Stocks Set to Regain Leadership After Rotation Rally, iM Securities Says

According to iM Securities analyst Kim Jun-young, on July 6, South Korea's stock market is expected to shift back to semiconductor-heavy leadership after a recent rally in neglected sectors, as profit forecasts for chip stocks are rising significantly. The 12-month forward operating profit outlook for semiconductors rose 25.4% in the past month, far outpacing the broader KOSPI index, the report said. However, the return to semiconductor dominance may be volatile due to stretched liquidity conditions and outsized leverage ETF positions. SK Hynix single-stock leverage ETF assets totaled $19.4 billion, equivalent to 4.26 times the stock's daily average trading volume, while Samsung Electronics leverage ETF assets reached $12.4 billion, or 2.77 times its daily trading volume, according to the analysis.
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