Market views· Sector Analyst
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The Korean market is experiencing a slowdown in rotation momentum, averaging -8.80%. A clear risk-off bias is evident, with defensive sectors outperforming cyclical sectors by a spread of -6.47%. Construction and banking sectors maintain relative strength, while battery and semiconductor sectors exhibit sharp weakness. The low inter-sector correlation of 0.395 suggests dispersed market movements.
Action: Given the distinct capital shift toward defensive sectors, a conservative approach is required: overweight defensive sectors and underweight cyclical growth sectors.
| # | Type | |||||
|---|---|---|---|---|---|---|
| 1 | Construction 117700 | DEF | +9.38% | +15.87% | +4.05% | +16.28 |
| 2 | Energy/Chem 266360 | CYC | +2.16% | +11.20% | +6.70% | −7.89 |
| 3 | Banking 102110 | DEF | +0.17% | +0.44% | −0.12% | +0.98 |
| 4 | Bio 244580 | DEF | +0.07% | +8.32% | −2.48% | −12.33 |
| 5 | Automotive 091180 | CYC | −3.06% | −2.56% | −7.53% | −12.06 |
| 6 | Insurance 140700 | DEF | −3.29% | +6.18% | +23.89% | −8.77 |
| 7 | Semiconductor 091160 | CYC | −6.96% | +2.74% | −3.51% | −14.66 |
| 8 | Battery 305720 | CYC | −11.70% | +14.06% | −1.49% | −31.95 |
A defensive sector demonstrating outperformance against the benchmark across all timeframes with highly positive momentum.
A defensive sector maintaining stable relative strength and positive momentum.
A cyclical sector experiencing a sharp decline in short-term relative strength and highly negative momentum.
A cyclical sector with declining short-term relative strength and rapidly decelerating momentum.
A cyclical sector underperforming the benchmark across all timeframes with negative momentum.
With RS 20d +9.38%, 60d +15.87%, and 120d +4.05%, this sector shows sustained strength relative to the benchmark, and momentum is highly positive at +16.28. As a defensive sector, it is delivering the most prominent performance in the current risk-off market environment.
Maintaining good relative strength with RS 20d +2.16%, 60d +11.2%, and 120d +6.7%, momentum has turned negative at -7.89. Despite being a cyclical sector, it showed short-term strength, but caution is warranted due to slowing momentum.
Showing slight strength relative to the benchmark with RS 20d +0.17% and 60d +0.44%, momentum is positive at +0.98. As a defensive sector, it continues to benefit from the high-interest-rate environment, maintaining a stable trend.
RS 20d at -3.29% indicates entry into a correction phase, with momentum also weak at -8.77. While 120d RS of +23.89% reflects long-term strength, recent short-term downtrends are pronounced.
RS 20d at -6.96% shows a downtrend, with momentum sharply decelerating to -14.66. As a cyclical sector, it is currently exhibiting significant weakness, diverging from the positive outlook in the previous day's report.
RS 20d plunged -11.70%, with momentum highly negative at -31.95. It displays the steepest weakness among cyclical sectors, likely driven by negative factors such as concerns over order pace adjustments.
The market is undergoing a risk-off rotation, with capital shifting from cyclical sectors to defensive sectors.
Cyclical sector average momentum stands at -4.89%, while Defensive sectors are at +1.58%, resulting in a spread of -6.47% that clearly indicates the outperformance of defensive sectors. Overall rotation momentum is also slowing to -8.80.
Key driver: Broad market risk aversion and concerns over an economic slowdown are the primary drivers.
Sector ETF prices relative to KOSPI from AlphaLenz's daily price database, 14 Nov 2026.