Shaking Domestic Stock Market, Now is the Time to Focus on Earnings Stocks | Cha Young-joo, Director of Wise Economic Research Institute

Summary

Cha Young-joo analyzes the Korean stock market's recent volatility, emphasizing that investors should focus on earnings-driven stocks. He reaffirms his bullish view on Samsung Electronics and SK Hynix due to intact AI momentum. He presents a turnaround thesis for Samsung SDI based on accelerating profit improvements and sees value in Korean securities stocks like Kiwoom Securities. He also highlights the KOSDAQ index's need to break 1000 points for a momentum trigger.

• Market volatility driven by emotional selling, but fundamentals for top AI-related stocks remain strong.
• Samsung Electronics and SK Hynix are still supported by AI momentum; dips are buying opportunities.
• Samsung SDI is expected to see reduced Q2 losses and may turn profitable in Q3, making it a pre-earnings play.
• Kiwoom Securities and other securities stocks are attractive due to growing interest income from customer deposits and credit loans.
• Leveraged ETF products benefit securities firms' fees, and recent regulator comments suggest favorable outlook.
• KOSDAQ is stuck near 900; a decisive break above 1000 points would signal bullish momentum.
• Upcoming earnings season is critical; investors should monitor earnings guidance via news search.
• Sector earnings expectations are highest for semiconductors, secondary batteries, securities, and others, but stock selection is key.