Why You Should Pay Attention on October 5th…Foreigner Return Has Already Begun | Hong Seon-ae, Lee Hyeok-jin NH Investment & Securities Stock Strategy Team Leaders

Summary

Lee Hyeok-jin, NH Investment & Securities stock strategy team leader, argues that Korea's July trauma is giving way to a volatility-driven foreign investor return and recommends holding fundamentally sound Korean stocks. He sees KOSPI's technical rebound from 5,500 to 7,300 as likely, with further gains conditional on AI capex doubts fading and oil falling. He is also constructive on US equities into year-end and highlights October 5 as the CME computing futures index launch that could accelerate AI capex confidence.

• Korean VKOSPI dropped from around 90 to the mid-50s, triggering foreign buying and supporting a KOSPI rebound.
• The speaker recommends holding fundamentally sound Korean stocks despite July trauma and selling pressure.
• A technical rebound from the 5,500 low could reach roughly 7,300; above 7,500 is conditional on AI capex and oil.
• US equities are expected to rally into year-end, with Goldman Sachs's year-over-year return used as a canary signal.
• Oil below $80 is needed to keep CPI and PPI calm and reduce rate-hike fears.
• Hyperscaler operating cash flow growth around 40% suggests AI capex fears over free cash flow are overblown.
• The CME computing futures index listing on October 5 may financialize AI compute and support more aggressive AI capex.
• Midterm election seasonality supports buying equities around October.