Individual Investors Surrender to Abnormal Domestic Market, 5.8 Trillion Won Sell-Off and Tears of Blood / Bull or Bear Market? Tomorrow's Morning Session Decides

Summary

Director Park Hyun-sang analyzes a violent trading day in which individual investors panic-sold KRW 5.8 trillion, circuit breakers were triggered repeatedly, and the KOSPI initially dropped 5% before reversing to close higher. He interprets heavy foreign buying, margin call statistics, and the recovery off the 120-day moving average as potential bottoming signals, while highlighting semiconductor materials/equipment and cosmetics as leading sectors and waiting for U.S. CPI to confirm the morning session's direction.

• Extreme volatility saw individual investors dump KRW 5.8 trillion, with the KOSPI plunging nearly 5% intraday before reversing to a 0.73% gain.
• Circuit breakers triggered seven times this year and new leveraged ETFs are seen as exacerbating abnormal moves; regulatory changes are awaited.
• Foreigners bought KRW 1.9 trillion in cash, including KRW 1.3 trillion in SK Hynix, while futures buying also pointed to accumulation near lows.
• 20-somethings accounted for 60% of margin-call accounts, suggesting a washout that historically marks a bottom.
• Samsung Electronics and SK Hynix stabilized first and are seen as prerequisites for broader market recovery.
• Semiconductor materials/equipment (소부장) led with double-digit gains and new highs, driven by strong earnings expectations.
• Cosmetics is the only major sector holding up, supported by excellent export data, and likely to stay in a leadership role.
• ABL Bio and LigaChem Bio hit new highs despite Alteogen's plunge, showing biotech resilience; second-half catalysts include U.S. CPI, bank earnings, and index stabilization.