Real Market: Targeting Short Covering for Immediate Stock Price Surge / Next Round of Buyback Stocks Now Visible | Director Park Hyun-sang

Summary

Director Park Hyun-sang analyzes the Korean market on June 16, noting that while semiconductors (Samsung, SK Hynix) remain in an uptrend, the real opportunity is shifting to beaten-down sectors. He highlights a powerful short-covering phenomenon driving sharp rallies in defense, construction, renewables, and suggests that securities, cosmetics, autos, and biotech are next. He remains bullish on KOSPI targeting 9,000 and advocates a strategy of buying laggards with high short interest rather than chasing extended leaders.

• Market opened strong on US rally and Micron surge, but saw high intraday volatility; foreign investors bought for a third straight day while individuals sold heavily.
• Samsung Electronics and SK Hynix are still in a positive trend and can rise further, but chasing is dangerous; better to hold existing positions and accumulate on dips.
• A powerful short-covering rotation is underway: defense (LIG Nex1 up over 29% on Rheinmetall deal), construction, and wind/solar stocks are surging from deeply oversold levels.
• CS Wind hit the daily upper limit after Trump’s administration gave up its appeal over offshore wind, igniting a short squeeze that spread to other renewables.
• Securities stocks are trading at valuations implying a KOSPI of 7,000 while the index is at 8,700, with strong Q2 earnings expected; cosmetics exports are booming but stocks untouched; autos and biotech are also attractive laggards.
• KOSPI is positioned to challenge 8,900 and eventually 9,000 as market breadth improves and foreign inflows continue.
• The key tactical takeaway is to keep cash ready and target the next heavily shorted sector with good earnings, rather than being all-in on the semiconductor leadership.