July 31st Closing Market Review: Bad Volume, Finally Liquidated? The Aftermath of the Historic Surge is More Important! The Next Decisive Point is '7000p'

Summary

On July 31, KOSPI surged ~18% and KOSDAQ ~11% after a brutal sell-off, driven by forced liquidation of a highly leveraged hedge fund and massive short covering. Speakers view this as a significant bottom signal and expect a calmer rally ahead with KOSPI targeting 7000. SK hynix is called deeply undervalued, while Murata's raised MLCC guidance lifts Samsung Electro-Mechanics and Daeduck Electronics. Oversold semiconductor equipment and secondary battery stocks offer trading bounces, and rotation should broaden once 2x ETF restrictions ease.

• Record single-day surge fueled by short covering after hedge fund margin-call liquidation.
• Forced selling pressure resolved, marking a major bottom signal for Korean equities.
• KOSPI expected to reclaim 7000 in coming weeks, with a moderate recovery rally.
• SK hynix deeply undervalued even on conservative estimates; Samsung Electro-Mechanics and Daeduck Electronics rally on strong MLCC demand.
• Oversold KOSDAQ semiconductor equipment and materials stocks poised for a trading bounce.
• Secondary batteries have bottomed but only a short-term trading opportunity; biotech needs more time.
• August likely calmer as negative catalyst exhausted and rotation from large-caps begins.