Foreigners Who Were Accumulating Sold Over 2 Trillion Won in Futures - Is This a Real Stop-Loss? / Declining Stock Loan Balance: Will It Be an Inflection Point for the Korean Stock Market? | Lee Jihwan, CEO of Aurora Investment Advisory

Summary

Lee Jihwan, CEO of Aurora Investment Advisory, reviews a sharp KOSPI drop driven by rising Treasury yields, oil prices, and heavy foreign futures selling. He argues the foreign selling is mostly hedging rather than a directional stop-loss, while declining stock loan balances suggest a potential upward inflection. He advises patience in Samsung Electronics and SK Hynix, avoiding short-term chase trades, and focusing on rate beneficiaries, cosmetics/consumer discretionary, nuclear, and secondary battery themes on pullbacks.

• KOSPI fell about 4% and KOSDAQ 2.1% amid U.S. yield pressure and U.S.-Iran oil-price spikes.
• Foreigners sold stocks and built downside futures/options positions, but Lee Jihwan sees this as hedging rather than a July-style directional bet.
• Stock loan balances are falling sharply, which historically preceded April's rally and may be a positive leading signal.
• Early September is likely to stay volatile and consolidative with no clear buying base until around pre-Chuseok.
• Samsung Electronics and SK Hynix holders should hold rather than liquidate at lows, while watching mid-to-late September foreign flows.
• Preferred short-term opportunities include Korean bank stocks, cosmetics/consumer discretionary, nuclear power, and secondary batteries/ESS on pullbacks.
• Oil is expected to remain elevated in the $80s but an extreme spike above $90-$100 is unlikely.