August 12 Closing Bell: KOSPI Lifted by Samsung and SK hynix, Reasons to Raise Cash Instead of Chasing

Summary

The Korean market rallied sharply led by Samsung Electronics and SK hynix on heavy foreign buying, driven by reports that Temasek is investing in Korean chips. While speakers acknowledged the positive catalysts, they stressed caution due to geopolitical risks, rising oil prices, and upcoming CPI data. They recommended taking profits in overbought sectors like cosmetics, raising cash, and selectively looking at under-owned areas like telecom equipment and AI server builders.

• KOSPI surged 3.68% on strong foreign institutional buying of Samsung Electronics (+6%) and SK hynix (+5%).
• Report that Singapore's Temasek plans to invest in Samsung and SK hynix boosted sentiment, suggesting long-term institutional confidence.
• Lee Kwon-hee observed new foreign money entering, while existing foreign futures positions may limit short-term upside.
• AI infrastructure demand remains solid – positive neocloud earnings point to continued server and substrate spending.
• Jang Woo-jin warned about Nvidia's GPU-backed ABS financing as a future systemic risk akin to 2008 MBS.
• Cosmetics stocks are extended; Lee Kwon-hee advised reducing positions and rotating to less crowded sectors like telecom equipment.
• Upcoming US CPI and options expiry will likely cause volatility; speakers advised holding cash rather than chasing the rally.