Market views· Sector Analyst
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The Korean market is experiencing a slowdown in overall 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 semiconductor and battery sectors are showing sharp weakness due to Nvidia-related uncertainty and foreign selling. The market is closely watching for a recovery of the KOSPI 5300 level and the resolution of uncertainty in key growth sectors in the short term.
Action: Given the high level of overall market uncertainty, a conservative approach is required, involving portfolio rebalancing toward defensive sectors and reducing exposure to 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 |
Maintains strong relative strength and momentum, highlighting its defensive appeal amidst the market's risk-off sentiment.
Displays relative strength due to its defensive nature and inflows of bargain-hunting capital, suggesting a stable trend.
Sharp weakness and deepening momentum slowdown are occurring due to Nvidia uncertainty and foreign selling.
Facing the greatest downside pressure amid the market's risk-off sentiment due to very sharp weakness and declining momentum.
The sector has surged +9.38% and +15.87% relative to the benchmark in the short and medium term, respectively, demonstrating very strong relative strength. With strong momentum of +16.28, its defensive characteristics are highlighted amid the market's risk-off bias.
The sector has surged +11.2% relative to the benchmark in the medium term, maintaining strength; however, short-term relative strength rose only slightly by +2.16%, and momentum turned negative at -7.89. Despite being a cyclical sector, it showed selective strength, but momentum deceleration is observed.
The sector maintains slight outperformance relative to the benchmark in both the short and medium term, with defensive characteristics highlighted by bargain-hunting inflows amid the market's risk-off sentiment. Momentum is weak but positive at +0.98.
The sector has declined sharply, underperforming the benchmark by -6.96% in the short term, with momentum plunging to -14.66. Weakness persists as foreign selling intensifies amid Nvidia-related uncertainty and concerns over AI regulations.
The sector has suffered a severe downturn, dropping -11.70% against the benchmark in the short term, with momentum plummeting to -31.95. It has been hit hardest amid the recent broad market risk-off sentiment.
The sector surged +23.89% against the benchmark in the long term but turned bearish with a -3.29% correction in the short term. Despite being a defensive sector, caution is warranted as momentum has declined to -8.77.
Overall market rotation momentum is slowing, with capital flows observed from cyclical sectors to defensive sectors.
Average momentum across all sectors slowed to -8.80%, with 6 out of 8 sectors recording negative momentum. Notably, the average RS momentum for cyclical sectors was -4.89%, showing a -6.47% spread against defensive sectors' +1.58%, indicating a distinct risk-off bias. While defensive sectors such as construction and banking show strength, cyclical sectors like semiconductors and batteries are exhibiting sharp weakness.
Key driver: Nvidia-related uncertainty, US-led AI regulatory concerns, and foreign investor flow volatility
Sector ETF prices relative to KOSPI from AlphaLenz's daily price database, 15 Nov 2026.