KOSDAQ Plunges, KOSPI Soars… The Fear of 2x ETFs Becoming a Supply-Demand Black Hole: The Reason Why Other Leading Stocks All Plunged

Summary

CEO Lee Kwon-hee discusses the massive market impact of the launch of 2x leveraged ETFs on Samsung Electronics and SK Hynix, which caused a selloff in other leading stocks and a rotation into memory and select large caps. He identifies specific opportunities in LS Electric, DND Pharmatech, ABL Bio, Hyundai Motor, and secondary battery stocks on dips, while warning about gap-fill risks for SK Hynix.

• The launch of Samsung and SK Hynix 2x ETFs caused a major rotation, with money flowing out of other sectors including semiconductor equipment and shipbuilding.
• SK Hynix is preferred over Samsung as a pure semiconductor play and is narrowing the market cap gap.
• LS Electric's 8% drop due to an accounting error is seen as a buying opportunity.
• DND Pharmatech's obesity drug shows exceptional phase 2 data, with a license-out catalyst that could drive market cap to 5 trillion won.
• ABL Bio is oversold after dilution news and offers a potential bounce for dip buyers.
• Hyundai Motor is recommended as a rotational trade when money leaves memory stocks.
• Secondary battery names L&F and Samsung SDI are attractive if they dip further, supported by ESS and Ford demand.
• HYBE has a valuation disconnect but lacks a clear near-term trigger for a rebound.