SK Hynix hits daily limit... Consecutive crashes and surges, retail investors exhausted by abnormal market dump of 10 trillion won / 'Foreigners bought 8 trillion, has the real bottom arrived?' | CEO Kim Dong-yeop

Summary

After two days of circuit breakers, KOSPI surged 18% and SK Hynix hit the daily limit. CEO Kim Dong-yeop attributes the bounce to strong US big tech earnings, a short squeeze, and a hedge fund liquidation averted, but warns the move is a reaction to abnormal selling rather than a trend reversal. He expects KOSPI to trade in a range and favors oversold semiconductors, data center infrastructure, secondary batteries, and shipbuilding, while suggesting heatwave stocks as a light touch.

• KOSPI soared ~18% and KOSDAQ 11.6%, with SK Hynix hitting the upper limit after two consecutive days of historic crashes.
• The rebound was fuelled by strong US cloud earnings, a short squeeze, and the avoidance of a large hedge fund forced liquidation.
• CEO Kim Dong-yeop views the rally as a correction of abnormal flows, not a sustainable trend, and sees KOSPI floor near 5,262 with resistance around 7,000.
• He is bullish on oversold semiconductor and equipment stocks, expecting their rebound to continue next week.
• Data center infrastructure plays (construction, emergency power) are highlighted due to Korea's AI data center expansion.
• Secondary battery sector shows early signs of bottoming, aided by quarterly profit recovery and supportive oil prices.
• Shipbuilding stocks, including engine and equipment names, benefit from US desire to source outside China and strong earnings.
• Heatwave theme stocks are mentioned only as a light, short-term tactical trade with no long-term conviction.