South Korea’s equity market rebounds since mid-March

Bloomberg

South Korea’s equity market has rebounded more than any other since mid-March, even as its two largest stocks have yet to fully join in on the rally.
The Kospi index climbed 32% from a decade low on March 19, beating all other major gauges including those from China, Hong Kong and Japan, according to data compiled by Bloomberg. In that time, chipmakers Samsung Electronics Co. and SK Hynix Inc., which together account for almost 30% of the benchmark, have been the worst performers among the index’s biggest companies.
The two are still among the top contributors to gains in the index since March 19 given their outsize weightings.

The overall stronger jump across smaller names including health-care firm Samsung Biologics Co. and online services provider Naver Corp. points to the wider diversity of gains in Korea during the current run. By contrast, a narrowing group of winners at the top of the S&P 500 Index is a red flag for future performance, according to strategists with Goldman Sachs Group Inc.
About two-thirds of Kospi members are trading above their 50-day moving average, returning to levels last seen before the coronavirus outbreak, the data show. Only about 40% of S&P 500 stocks are above their short-term average, according to data compiled by Bloomberg.
As for Samsung and SK Hynix, prospects continue to brighten in the chip space after both firms posted profits ahead of expectations this month. Global lockdowns due to the pandemic are fueling greater demand for online services.