A Comparison of KOSPI 200 and S&P 500 Companies Performances in 2024

• S&P500 is up 27.7% YTD, outperforming KOSPI which is down 6.9% YTD. Global fund flow continues to pour into top quality US stocks such as Palantir, Tesla, and NVIDIA.

• The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. However, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD.

• There is no large Palantir-like company that deals with AI/data analytics in Korea. However, large cap IT services and telcos in Korea are increasingly expanding their AI/data analytics related business.

Conclusion First

1) Sharp outperformance of S&P500 vs KOSPI

S&P500 is up 27.7% YTD, sharply outperforming KOSPI which is down 6.9% in the same period. Global fund flow continues to pour into top quality US stocks such as Palantir Technologies (PLTR US), Tesla (TSLA US), and NVIDIA Corp (NVDA US).

S&P500 vs KOSPI (YTD, as of 18 December 2024) (Source: Google finance)

2) High Quality AI/Data Analytics Stocks Outperforming

Of the top 20 best performing stocks in S&P500 this year, seven of them (35%) are related to AI and cloud software/hardware products and services. These seven companies are as follows:

• Palantir Technologies (PLTR US)

• NVIDIA Corp (NVDA US)

• Axon Enterprise (AXON US)

• Broadcom (AVGO US)

• Arista Networks (ANET US)

• Fair Isaac Corp (FICO US)

• Oracle Corp (ORCL US)

3) AI/Data Analytics Related Stocks in Korea

There are no pure-play, large cap AI/data analytics related companies in Korea. Nonetheless, the large cap IT services related companies Samsung Sds (018260 KS), Hyundai Autoever (307950 KS), and LG CNS are increasing their business applications in the AI/data analytics related services.

Furthermore, the telcos including SK Telecom (017670 KS), KT Corp (030200 KS), and LG Uplus Corp (032640 KS) are increasing their investments in AI/data analytics related services as well.

4) Top 20 Best Performing Stocks in KOSPI 200(YTD)

The top 20 best performing stocks in KOSPI 200 (YTD, as of 18 December) are shown below.

• The top 20 best performing stocks in KOSPI 200 are up on average 106.8% YTD. On the other hand, the remaining 180 stocks in KOSPI 200 are down on average 9.2% YTD.

• Of these 20 companies, three of them (Hyundai Electric & Energy (267260 KS), Hyosung Heavy Industries Corp (298040 KS), and LS Electric (010120 KS)) are related to electricity/power generation related equipment providers. These companies are key beneficiaries of major markets such as the United States aggressively purchasing more energy/electricity related equipment to bolster their outdated electricity grid nationwide.

• Aerospace and defense related companies also performed well. Three companies including Hanwha Aerospace (012450 KS), Hyundai Rotem Company (064350 KS), and LIG Nex1 Co (079550 KS) are among the top 20 best performing stocks in KOSPI 200.

• There are three shipbuilding stocks including HD Hyundai Heavy Industries (329180 KS), HD Korea Shipbuilding & Offshore Engineering (009540 KS), and Hyundai Mipo Dockyard (010620 KS) that are among the top 20 best performing stocks in KOSPI 200.

• There are also four financials including Meritz Financial Group (138040 KS), KB Financial (105560 KS), Bnk Financial Group (138930 KS), and Jb Financial Group (175330 KS) that are among the top 20 best performing stocks in KOSPI 200 YTD. In particular, companies such as Meritz Financial and KB Financial are included in the Korea Value Up index and ETFs.

Source: Investing.com

5) Top 20 Best Performing Stocks in KOSPI 200(Last 1 Month)

• The top 20 best performing stocks in KOSPI 200 are up on average 18.7% in the past one month. On the other hand, the remaining 180 stocks in KOSPI 200 are down on average 0.6% in the same period.

• Samyang Foods (003230 KS) is the best performing stock in KOSPI 200 in the past one month (up 32.2%). Its Buldak hot instant noodles continue to experience strong export growth and the recent opening of a new instant noodle manufacturing facility in China has further boosted its share price. #

• There are four health care related stocks among the top 20 best performing in the past one month including GC Biopharma, Green Cross (006280 KS),Celltrion Inc (068270 KS), and SK Bioscience (302440 KS).

Source: Investing.com

6) Top 20 Worst Performing Stocks in KOSPI 200(YTD)

• The 20 worst performing stocks in KOSPI 200 are down on average 57.4% YTD.

  • Rechargeable battery is the worst performing sector in KOSPI 200.

  • There are 11 rechargeable battery related names including Kum Yang (001570 KS), POSCO ICT, SK IE Technology (361610 KS), Cosmo Advanced Materials, Posco Future M (003670 KS), Foosung Co Ltd (093370 KS), Hyosung Advanced Materials (298050 KS), L&F Corp, and LG Chem (051915 KS) that are among the top 20 worst performing stocks in KOSPI 200 so far YTD.

  • A combination of lower demand for EVs globally, earnings cut, and a new Trump administration that wants to cut EV subsidies have hammered the entire EV related rechargeable battery sector in Korea this year.

Source: Investing.com

7) Top 20 Worst Performing Stocks in KOSPI 200(Last 1 Month)

• Aerospace/defense which has been one of the best performing sector in KOSPI this year, is one of the worst performing sector in the past one month.

  • There are six aerospace/defense related stocks including Hyundai Rotem Company (064350 KS), Hanwha Corporation (000880 KS), Hanwha Aerospace (012450 KS), Korea Aerospace Industries (047810 KS), LIG Nex1 Co (079550 KS), and Hanwha Ocean (042660 KS) that are included among the top 20 worst performing stocks in KOSPI 200 in the past one month.

  • There are a combination of factors including stretched valuations and the new Trump administration that may try to end the wars in Ukraine and the Middle East (albeit it remains highly uncertain how this will be done) have poured some cold water on the hot aerospace/defense related stocks in Korea recently.

  • For further details, see our insight Trump Trade: Korean Construction Vs Military Stocks Amid Potential End of War in Ukraine?

Source: Investing.com