Samsung Electronics, SK Hynix Leverage Trading Volume 4x This Week: Why Stock Prices Plummet Despite Good News | Manager Park Geun-hyung

Summary

Park Geun-hyung of IBK Investment Securities explains the recent plunge in Korean memory semiconductors despite strong earnings, attributing it to extreme leveraged ETF concentration and hedge fund selling. He differentiates Taiwan's stable non-memory sector from Korea's cyclical memory exposure. While warning of short-term headwinds and a potential Q3 slowdown, he remains long-term bullish on Samsung and SK Hynix at cheap valuations. He also highlights record cosmetics exports as a contrarian opportunity and identifies KOSPI 7,300 as a likely support floor.

• Hedge funds sold Korean equities aggressively, especially semiconductors, while Taiwan selling was milder, reflecting market structure differences.
• Leveraged/inverse ETFs on Samsung Electronics and SK Hynix have swelled to 4x the stocks' average daily volume, creating extreme fragility.
• Morgan Stanley recommends reducing memory semis and rotating into hyperscalers and value/cyclicals near-term.
• DRAM and NAND price indicators are at historically overextended levels, suggesting a potential slowdown.
• Speaker is long-term bullish on Samsung and SK Hynix, seeing current 5-6x P/E as too cheap and expecting re-rating toward 10x.
• Korean cosmetics exports hit all-time highs while related stocks lagged, signaling a buying opportunity.
• KOSPI index is expected to find strong support around 7,300, limiting further downside.
• Upcoming big tech/hyperscaler Q2 earnings and capex guidance will be pivotal for AI memory demand outlook.