As Volatility Index Plummets, Foreign Capital Pours In: 'Welcome Surge, Be Careful Tomorrow' / Too Many Stocks Look Poised to Rise

Summary

Shinhan Investment team leader Hwang Yu-hyeon discusses the sharp rebound in KOSPI, Samsung Electronics and SK hynix, attributing it to a natural double-bottom formation, vanishing volatility, and foreign buying. He advises trimming the chip giants on strength and rotating into sectors like construction and SK Telecom that show early golden crosses with pending catalysts. The market is entering a low-volatility consolidation phase that should support broader, healthier gains.

• KOSPI forms a double bottom after the extreme July sell-off, entering a volatility-compression phase
• Samsung Electronics and SK hynix lead the bounce; Samsung’s record-low foreign ownership signals huge potential buying
• SK hynix lags technically and has room to outperform Samsung in a catch-up rally
• Short-term traders should trim Samsung/SK hynix after the sharp surge, as the index remains in a box range
• Construction stocks (GS E&C, Samsung E&A, DL E&C) have quietly formed golden crosses and may rotate next
• SK Telecom is flagged as a catalyst play on its affiliate Entropic’s upcoming IPO
• Cosmetics and biotech sectors are already extended; the focus should be on sectors still early in the rotation
• Foreign inflows are resuming as volatility collapses and currency levels are attractive