[R&E] KOSDAQ Surges 4.99%, Secondary Batteries Show Strength Amid 231% Jump in Memory Semiconductor Exports

[R&E: Research & Epoch] This is News Epoch's signature report, integrating and analyzing global financial data and domestic securities firm research to shed light on a new era of investment.

Global Market Brief

Last Friday (05/22), U.S. stock markets closed higher across all three major indices ahead of the Memorial Day holiday weekend. The Dow Jones Industrial Average rose 0.58%, the S&P 500 gained 0.37%, and the Nasdaq Composite increased 0.19%. Notably, the S&P 500's earnings growth reached its highest level in five years, suggesting that alongside the leadership of the top seven mega-cap tech companies, the remaining 493 companies have also begun to contribute to earnings improvement. The Philadelphia Semiconductor Index also climbed 1.99%, supporting the solid trend in the semiconductor sector.

However, economic indicators sent mixed signals. The U.S. Manufacturing Purchasing Managers' Index (PMI) stood at 55.3, maintaining an economic expansion phase, but the University of Michigan's Consumer Sentiment Index for May came in at 44.8, falling below both the previous month (49.8) and market expectations (48.2), revealing a slowdown in consumption. At the same time, the one-year inflation expectation rose to 4.8%, up from last month (4.7%), indicating that inflationary pressure still exists.

Meanwhile, international oil prices (WTI) tumbled more than 6% to $90 on news of a draft peace agreement between the United States and Iran. The draft, which includes Iran abandoning its nuclear development and allowing crude oil exports, raised expectations of increased supply in the international energy market. Due to Memorial Day, the New York Stock Exchange (NYSE) has been closed since last Friday (05/22) and is scheduled to reopen today, 05/26 (Tuesday).

Domestic Market Overview

On the previous trading day, last Friday (05/22), the KOSPI rose 0.41% to 7,847.71 points, and the KOSDAQ showed strength, surging 4.99% to 1,161.13 points. In particular, a buy sidecar was activated in the KOSDAQ market, proving a strong influx of buying pressure.

The core driver of this market vitality can be found in the significant increase in memory semiconductor exports. As of May 20, the average daily memory semiconductor export value per working day reached $1.22 billion, up 231% year-on-year. In detail, DRAM exports jumped 456%, and NAND exports rose 183%. These figures reveal the strong fundamentals of the domestic semiconductor industry.

On the other hand, Samsung Electronics (KOSPI: 005930) fell -2.34% as profit-taking occurred, and news of the third labor union filing an injunction to stop the vote on the tentative agreement affected investor sentiment. The KRW/USD exchange rate closed up 8.9 won at 1,517.5 won, continuing the trend of upward pressure from a strong dollar.

Key Industry Issues and Insights

With the expansion of the artificial intelligence (AI) industry, the global semiconductor market is once again gaining vitality. As of May 20, the average daily memory semiconductor export value per working day recorded $1.22 billion, a 231% increase year-on-year, among which DRAM exports increased by 456%, NAND exports by 183%, MCP exports by 102%, and SSD exports by 308%, respectively. This is attributed to the expansion of computing demand as the AI adoption rate among U.S. companies increased from around 8% at the end of last year to 20% in the first half of this year. The fact that major global AI companies have taken control of half of the world's computing power, with Google taking first place at 25%, indicates the intensification of competition to build AI infrastructure.

In the U.S. market, Dell Technologies (NYSE: DELL) rose 16.77% and HP (NYSE: HPQ) rose 15.25%, while Lenovo saw a 27% increase in sales, confirming a recovery in PC demand. AMD (NASDAQ: AMD) CEO Lisa Su projected annual growth of more than 35% over the next five years, proving strength in the retail CPU market. Domestically, Segyeong Hitech (KOSDAQ: 148150) posted first-quarter sales of 61 billion won, up 13.1% year-on-year, though it recorded an operating loss of 2.2 billion won, narrowing its deficit. The advent of the AI era is providing new growth opportunities for domestic and foreign semiconductor companies.

The global energy transition and increasing demand in the defense industry are opening new avenues for domestic shipbuilding and power infrastructure companies. Upward adjustments in defense budgets across Europe are leading to a procurement cycle to bridge the production capacity gap needed for deterring Russia by 2030, which translates into benefits for domestic defense and heavy industry companies. Domestically, Samsung Heavy Industries (KOSPI: 010140) secured an order for 3 LNGCs from Seapeak at $251.2 million per vessel, and HD Hyundai Samho won an order for 6 VLACs from Ciner Shipping at $119.5 million per vessel, continuing their solid performance.

In the power infrastructure sector, private companies have been temporarily allowed to participate in KEPCO's power transmission and substation construction projects for three years. This is interpreted as a measure to respond to the modernization of the aging power grid and the increasing demand for data center power. HD Hyundai Heavy Industries (KOSPI: 329180) won a contract to supply 33 units of 20MW-class 4-stroke gas engines for a 684MW data center power generation project to the U.S.-based AEG, and HD Hyundai Marine Solution (KOSPI: 443060) signed a memorandum of understanding (MOU) with AEG for the maintenance of engines for data center power generation. These moves reveal the potential for domestic companies to play crucial roles in the global energy and data center infrastructure markets.

Amidst this trend, the strategic changes of finished vehicle companies are drawing attention. Tesla (NASDAQ: TSLA) rose 1.95% on news that its FSD had crossed the threshold of the Chinese market, and Ford (NYSE: F) announced that following the mutual dissolution of its joint venture (BlueOval SK) with SK On, it will fully convert its existing Kentucky battery plant into a battery energy storage system (BESS) production base. This is interpreted as an attempt by automakers to expand their business scope beyond simple electric vehicle production into comprehensive energy solutions. Hyundai Motor Group is accelerating the deployment of Atlas into production and strengthening its competitiveness in the future mobility market through the establishment of new software factories and a robot parts organization. The global battery supply chain is also actively restructuring, with the EU stepping up to check Chinese batteries, while Zimbabwe has begun exporting lithium sulfate.

Market Signals

• Memory Semiconductor Exports: As of May 20, the average daily memory semiconductor export value per working day recorded $1.22 billion, a 231% increase year-on-year.

• HanAll Biopharma (KOSPI: 009420) IMVT-1402 Clinical Trial Results: In Period 1 of the clinical trial for intractable rheumatoid arthritis, it achieved ACR20 of 72.7%, ACR50 of 54.5%, and ACR70 of 35.8%.

• HD Hyundai Heavy Industries Engine Supply Contract: Won a contract to supply 33 units of 20MW-class 4-stroke gas engines for power generation at a 684MW data center in Texas, USA.

• WTI Crude Oil Prices: Dropped over 6% to $90 on news of a draft peace agreement between the United States and Iran.

Epoch View: Investment Implications

The global economy is facing a complex situation mixed with inflationary pressures and a slowdown in consumer sentiment. While the solid earnings growth trend in the U.S. market and the expansion of the manufacturing sector are positive, the downward revision of the University of Michigan's consumer sentiment and the rise in expected inflation add to the uncertainty of future monetary policy. The domestic market staged a bullish run centered on the KOSDAQ last Friday, reaffirming the core driver of domestic industries, particularly through the growth of memory semiconductor exports.

We judge that the expansion of the AI industry, the acceleration of the energy transition, and the increasing demand in the defense industry provide structural growth drivers for major domestic industries. Although the possibility of a peace agreement between the U.S. and Iran could put downward pressure on international oil prices and contribute to easing inflation, geopolitical uncertainties remain. Even amidst macroeconomic volatility, domestic industries are expected to maintain market vitality based on the solid fundamentals and growth drivers of specific sectors such as semiconductors, shipbuilding, and secondary batteries.

This content was generated by News Epoch's proprietary AI algorithm, which tracks and analyzes public data from major domestic securities firm research centers and global financial media in real time. It is an objective summary based on collected data and is not a solicitation or recommendation to invest in any specific stock.