Where is the market's gaze after semiconductors? How to read the signal of leading stock replacement | Lee Jae-gyu, SK Securities PB Deputy Manager [Focus Today's Stock]

Summary

Lee Jae-gyu from SK Securities discusses the necessity and diminishing benefit of sector rotation, emphasizing that semiconductors remain the dominant, earnings-backed leader. He advises holding Samsung Electronics and SK Hynix as core, sees potential in SK Telecom and large-cap pharma/biotech, and warns against aggressive rotation at this stage. The macro backdrop (stable US 10-year yield, oil/FX unlikely to plunge) supports the AI-driven uptrend despite foreign outflows and high volatility.

• Semiconductors are the clear leading sector; Samsung Electronics and SK Hynix are cheap on EPS and should be held for the medium to long term.
• The benefit of rotating out of laggard stocks has declined after six consecutive down days on KOSDAQ; only stocks with tiny liquidity should still be swapped.
• SK Telecom has low foreign ownership and may rise if AI/physical AI momentum boosts foreign inflows.
• Pharmaceutical and biotech stocks, especially top-50 KOSDAQ names, are buyable for a near-term rebound.
• Samsung SDS and LG Display are mentioned but not recommended as buys; they are just watch items.
• The market's AI narrative remains intact despite foreign selling (attributed to ETF rebalancing) and potential Space X IPO distraction.
• US 10-year yield stability is a positive factor; oil and FX are unlikely to fall sharply, supporting the market.
• Cash holding of 20-30% is advised due to ongoing high volatility, but the overall equity market is still trending upward.