Samsung has not yet joined the stock market rally in South Korea

The South Korean capital market has recovered more than any other since mid-March, though two key stocks have not yet joined the rally.

The Kospi index has climbed 32% from its largest bottom in a decade, outpacing other major indices, including those in China, Hong Kong, and Japan, according to data compiled by the agency.

At the same time, chipmakers Samsung Electronics and SK Hynix, which together account for nearly 30% of the benchmark, have the worst performance among the largest companies in the index.

However, both are among the most contributing to the gains, given their weighted size.

The overall stronger leap of smaller names, including healthcare professional Samsung Biologics and online service provider Naver, reveals a greater variety of well-performing companies in South Korea right now. By comparison, a much smaller group of successful players is at the top of the S&P 500 index, which is a warning for future performance, according to Goldman Sachs Group.

About two-thirds of Kospi members are trading above their 50-day average, returning to levels recently observed before the coronavirus pandemic, data show. Only about 40% of S&P 500 shares boast the same growth rate compared to their short-term average levels.

As for Samsung and SK Hynix, prospects for chipmakers continue to improve after both companies reported earnings this month ahead of analysts’ expectations. Pandemic-induced blockades around the world are driving a growing demand for online services.

Kospi rose 1.8% on Monday, despite growing speculation about the health of North Korean leader Kim Jong Un and the stability of the regime. Samsung Electronics enjoyed a 0.6% increase, contributing most to growth.