Market views· Sector Analyst
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Overall sector rotation momentum is accelerating at +7.09%, with 6 out of 8 sectors showing positive momentum relative to the benchmark. Defensive sectors (average +4.85%) hold a slight edge over cyclical sectors (average +3.56%), though the overall bias remains neutral. Low inter-sector correlation (0.367) suggests differentiated movements among individual sectors, with Insurance, Energy/Chemicals, and Battery sectors showing strength, while the Semiconductor sector exhibits sharp weakness.
Action: Consider overweighting defensive sectors (Insurance) with strong relative strength and cyclical sectors (Energy/Chemicals, Battery) with strong short-term rebound momentum amid accelerating market momentum, while underweighting the sharply weakening Semiconductor sector.
| # | Type | |||||
|---|---|---|---|---|---|---|
| 1 | Insurance 140700 | DEF | +14.66% | +19.63% | +38.70% | +24.99 |
| 2 | Energy/Chem 266360 | CYC | +11.25% | −0.10% | −5.24% | +21.57 |
| 3 | Battery 305720 | CYC | +9.37% | +22.25% | −18.67% | +15.65 |
| 4 | Automotive 091180 | CYC | +4.50% | −8.70% | −10.35% | +16.60 |
| 5 | Bio 244580 | DEF | +3.01% | +6.52% | −16.98% | +5.05 |
| 6 | Construction 117700 | DEF | +2.88% | +13.11% | −14.93% | +3.82 |
| 7 | Banking 102110 | DEF | −1.14% | +4.33% | +2.49% | −2.29 |
| 8 | Semiconductor 091160 | CYC | −10.89% | +8.51% | −1.36% | −28.70 |
Sustained outperformance is expected based on overwhelming relative strength and strong momentum.
High potential for further short-term upside based on a sharp surge in short-term relative strength and strong momentum.
Recovery trend is likely to persist due to strong short- and medium-term relative strength and positive momentum.
High risk of further decline due to sharp deterioration in relative strength and highly negative momentum.
Maintaining overwhelming strength relative to the benchmark, with 20-day, 60-day, and 120-day RS at +14.66%, +19.63%, and +38.7%, respectively. Momentum is also very strong at +24.99%, suggesting the sector is serving as a safe haven amidst market uncertainty.
20-day RS surged to +11.25%, indicating short-term strength, but 60-day and 120-day RS remain sluggish at -0.1% and -5.24%, respectively. Momentum is accelerating very strongly at +21.57%, raising expectations for a short-term rebound.
20-day RS shows strength at +9.37%, and 60-day RS is very healthy at +22.25%. However, 120-day RS remains in a weak zone at -18.67%, making the trajectory of long-term recovery critical. Momentum is positive at +15.65%.
20-day RS is slightly weak at -1.14%, but 60-day and 120-day RS maintain an advantage over the benchmark at +4.33% and +2.49%, respectively. Momentum is weakening at -2.29%, warranting short-term caution.
RS plunged to -10.89% over the last 20 days, marking the weakest performance. Momentum has also deteriorated rapidly to -28.70%, indicating this sector faces the greatest downside pressure among cyclicals.
Overall sector rotation exhibits differentiated movements among individual sectors amid accelerating momentum, with defensive and certain cyclical sectors showing simultaneous strength, indicating a mixed trend.
Overall sector rotation momentum is accelerating at +7.09%, with 6 out of 8 sectors showing positive momentum. Average relative strength for cyclical sectors is +3.56%, while defensive sectors average +4.85%, giving defensive sectors a slight edge, though the overall bias is neutral (-1.29% spread). Inter-sector correlation remains low at 0.367.
Key driver: A combination of accelerating overall market momentum and sector-specific fundamentals and supply-demand factors is at play.
Sector ETF prices relative to KOSPI from AlphaLenz's daily price database, 2 Nov 2026.