Surprise Crash... Foreigners' Revenge Battle Begins After Losses on Option Expiration Day / In the Worst Case, It Could Fall This Far... What Are the Downside Gap Scenario and Response? | CEO Lee Gwon-hee

Summary

Lee Kwon-hee analyzes KOSPI's sharp pullback from 8000, attributing it to US 10-year yield spike, weak Treasury auction demand, and foreign futures selling. He views the decline as a normal rest phase with worst-case downside to 6900. He recommends buying leading stocks such as Samsung Electronics, SK hynix, and Hyundai Motor on dips, while noting KOSDAQ remains weak without near-term catalysts.

• KOSPI dropped sharply after briefly touching 8000, driven by US 10-year yield rising above 4.5% and a poorly received Treasury auction.
• Foreign investors suffered large losses on option expiration day and have been selling futures heavily, increasing market pressure.
• Lee Kwon-hee sees the pullback as a healthy rest in an uptrend and warns of a possible gap fill to 6900 in the worst case.
• He advises not to panic but to buy leading stocks on weakness, specifically Samsung Electronics, SK hynix, and Hyundai Motor.
• KOSDAQ is weaker, with many stocks still below pre-war prices and no policy support until after elections.
• Program selling (sell begets sell) is amplifying the decline, but fundamentals of major companies remain intact.
• NVIDIA earnings next week and Trump's comments on rates are potential upside triggers.
• Geopolitical issues (Hormuz) and domestic labor strikes are seen as noise rather than fundamental threats.