South Korea's National Pension Service recorded a 189.5 trillion won increase in its domestic stock holdings valuation during Q2, according to data from financial information provider FnGuide as of the 6th. The valuation of listed companies where NPS holds 5% or more stakes reached 486 trillion won, up from 296.4 trillion won at the end of March, representing a 63.9% return. This quarterly increase is the largest on record and more than double the Q1 gain of 78.5 trillion won (32.0% return). The surge coincided with the KOSPI index surpassing the 9,000 mark for the first time in history during Q2. NPS, the largest institutional investor in South Korea's stock market, saw Samsung Electronics and SK Hynix account for 151 trillion won of the total increase.
Samsung Electronics and SK Hynix Drive 79.8% of Total Gains
Samsung Electronics and SK Hynix combined contributed 151 trillion won to NPS's Q2 valuation increase, representing 79.8% of the total 189.5 trillion won gain. SK Hynix holdings remained at 7.50% but valuation jumped from 43.1 trillion won at the end of March to 125.2 trillion won, an increase of 82.1 trillion won (190.3% return). Samsung Electronics holdings rose from 7.75% to 7.84%, with valuation climbing from 76.6 trillion won to 145.8 trillion won, a gain of 69.1 trillion won (90.1% return). The combined weight of these two stocks in NPS's total domestic equity portfolio expanded from 40.4% at the end of March to 55.7% as of the 6th.
SK Square and Samsung Electro-Mechanics Add Over 10 Trillion Won Each
SK Square ranked third in valuation gains with an increase of 11.9 trillion won. Samsung Electro-Mechanics followed with a 10.4 trillion won gain despite NPS reducing its stake from 10.46% to 9.95% (a decrease of 0.51 percentage points). Samsung C&T added 2.7 trillion won, Samsung Life Insurance gained 2.5 trillion won, and SK increased by 2.0 trillion won.
Mirae Asset Securities Leads Valuation Losses at 1.07 Trillion Won
Mirae Asset Securities, which posted strong gains in Q1, recorded the largest valuation loss in Q2 at 1.07 trillion won. LG Energy Solution declined by 573.7 billion won, Hanwha Systems fell 451 billion won, Kakao dropped 447 billion won, and Naver decreased by 415.3 billion won.
NPS Portfolio Composition Shifts with 19 New 5%+ Stakes
NPS added 19 new stocks to its 5%-or-above holdings list in Q2, including Simpac and SK Eternix. Twenty-one stocks fell below the 5% threshold, including LX Semicon and Hanatour. The total number of 5%+ holdings decreased slightly from 274 at the end of March to 270 as of the 6th. Stocks with 10%+ holdings dropped from 34 to 32. As of the 6th, Hyundai Department Store (13.49%), Samsung Securities (13.35%), BH (13.35%), and Korea Financial Group (13.28%) had the highest NPS ownership percentages. NPS increased stakes most significantly in BH (7.47%→13.35%) and DL E&C (8.06%→11.44%), while reducing positions in LG (9.19%→6.42%), SK Chemicals (8.50%→6.51%), Daejoo Electronic Materials (9.98%→7.66%), and Vina Tech (8.68%→5.12%).
Rebalancing Moratorium Ends, Market Watches for July Sell Pressure
NPS's domestic stock rebalancing moratorium expired at the end of June. Market participants are closely monitoring the potential volume of NPS sell orders starting in July as the fund adjusts its domestic equity allocation.
FAQ
Q: How much did the National Pension Service's Korean stock holdings increase in Q2?
A: NPS's domestic stock holdings valuation increased by 189.5 trillion won in Q2, reaching 486 trillion won as of the 6th. This represents a 63.9% return compared to the end of March valuation of 296.4 trillion won.
Q: Which stocks contributed most to NPS's Q2 gains?
A: Samsung Electronics and SK Hynix accounted for 151 trillion won of the total 189.5 trillion won increase, representing 79.8% of total gains. SK Hynix added 82.1 trillion won while Samsung Electronics contributed 69.1 trillion won.
Q: What happened to NPS's domestic stock rebalancing moratorium?
A: The NPS domestic stock rebalancing moratorium expired at the end of June, leading to market attention on potential sell orders starting in July as the fund adjusts its domestic equity allocation.
