Overselling is Clear...Now is Position Adjustment Rather Than Panic Selling | Lee Jaegyu, SK Securities PB Deputy Manager [Focus Today's Stock]

Summary

Lee Jaegyu, a PB Deputy Manager at SK Securities, analyzes the sharp KOSPI decline on June 8, 2024, attributing it to US jobs data, geopolitical risks, and leveraged ETF volatility. He argues the sell-off is overdone, especially for Samsung Electronics and SK Hynix, which remain undervalued on earnings. He expects a short-term rebound within the week based on foreign futures buying, VIX spikes, and historical patterns, but advises investors to maintain cash reserves and adjust positions based on upcoming macro events like US CPI and BOJ decisions.

• KOSPI fell sharply with over 800 stocks declining; the speaker calls it an oversold condition.
• Samsung Electronics and SK Hynix are highlighted as undervalued with strong earnings fundamentals.
• Foreigners have bought KOSPI futures worth 1.3 trillion won, suggesting institutional support.
• VIX spike and historical data after 8%+ drops point to a high probability of rebound within a month.
• The speaker maintains 25% cash, focusing on semiconductors and shipbuilding in his portfolio.
• He warns of persistent won weakness due to foreign equity outflows and reinvestment abroad.
• AI capex as a share of GDP is still below the internet bubble peak, supporting continued investment.
• Key events to watch: US CPI release, Korea options expiry, and BOJ meeting.