Weekly Market Leaders & Top 10 Picks — 6/1/2026

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Key Weekly Sectors

• Semiconductors & Tech: The KOSPI is expected to hit an all-time high, driven by the anticipated US-Iran peace MOU and optimism surrounding US tech stocks. Capital is heavily concentrated in large-cap semiconductor stocks like Samsung Electronics and SK Hynix, leading the index rally. Kiwoom Securities expects a rebound in semiconductor stocks—which saw pullbacks yesterday—citing renewed US-Iran negotiation hopes, the strength of KOSPI 200 overnight futures, and strong earnings in related tech firms.

• Secondary Batteries: While they might seem overshadowed by the current AI data center-driven semiconductor rally, secondary battery stocks are still considered significantly undervalued. A gradual entry is recommended based on Q2 earnings reports, and long-term investors should be prepared for volatility and keep a close eye on the situation through the end of 2026.

• Cloud & Space Industry: Stable economic indicators are boosting investor sentiment, with particular interest shifting toward AI/cloud tech stocks and the space industry, fueled by the excitement surrounding the SpaceX IPO.

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Top 10 Promising Stocks for Next Week

1. LG CNS: Trading strong after breaking its 52-week high of 147,900 KRW in June 2026. It’s a key play in AI and cloud services, showing healthy short-term patterns and valuation post-breakout.

2. Samsung Electronics: Capturing the most market liquidity in the semiconductor sector. Its stock remains resilient due to US-Iran truce hopes and growing demand for AI data centers.

3. SK Hynix: A core leader alongside Samsung Electronics in the semiconductor-driven market, showing strong gains despite the extreme concentration of capital.

4. Jusung Engineering: Recently included in the Top 10 for institutional net buying. As a semiconductor equipment supplier, it is expected to benefit from increased capital expenditure linked to rising AI demand.

5. LG Display: A focus for institutional investors, with performance expected to improve as AI-related demand in the display industry recovers.

6. EcoPro BM: A secondary battery materials firm attracting institutional interest. It is expected to create value as the mid-term EV market recovers.

7. Hanwha Solutions: Continues to attract institutional net buying as a beneficiary of renewable energy and AI infrastructure investments.

8. Foosung: A major target for institutional buying. As an electronic components manufacturer, it is expected to see indirect benefits from rising AI data center demand.

9-10. Semiconductor & Tech ETFs: Given the high volatility of individual stocks, strategies pursuing sector-wide returns through leveraged ETFs are also gaining attention.

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Macro Environment & Strategy Analysis

Positive Factors

The market's primary drivers this week have been the reports of an imminent US-Iran peace MOU and Core PCE figures coming in lower than expected. Economic indicators are showing unexpected stability, easing concerns over interest rate hikes, while the reduced geopolitical risk from the potential Iran peace deal serves as a major positive signal.

In particular, the sustained expansion of US AI data center investments suggests that the semiconductor cycle may see a longer-term boom than previously anticipated, providing a structural foundation for the strength in tech stocks.

Cautionary Notes

Market funds are extremely concentrated in large-caps like Samsung Electronics and SK Hynix. While the index remains strong, the market environment is becoming more difficult for investors to navigate. Volatility could rise based on shifts in liquidity next week, so checking valuations and technical indicators before entering individual stocks is essential.

Investment Strategy for Next Week

• Continue tracking the rebound in semiconductor stocks from recent pullbacks.
• Consider a gradual entry into secondary battery stocks after Q2 earnings disclosures.
• To manage volatility, utilize broad market or sector ETFs rather than leveraged products.
• Keep a close watch on the progress of US-Iran negotiations and upcoming US economic data releases.