Institutions sweep up 500 billion KRW in KOSDAQ… This is how the August stock market will flow "Now is the time to be courageous" | Director Park Hyun-sang

Summary

Director Park Hyun-sang analyzes the August 4 market rebound, driven by institutional buying in KOSDAQ after a severe sell-off. He argues that extreme fear and cheap valuations create a broad Korean equity buy opportunity, highlights SK hynix's upcoming shareholder return catalyst, and suggests accumulating the lagging auto sector. He strongly warns against leveraged ETFs due to new regulations destroying liquidity.

• KOSDAQ surged for a third straight day with sidecar, while KOSPI recovered from early weakness.
• Institutions net bought ~500 billion KRW in KOSDAQ, signaling a shift to individual stocks after H1 underperformance.
• Park Hyun-sang believes the sell-off was overdone, valuations are cheap, and now is the time to be courageous and accumulate Korean equities.
• SK hynix is expected to soon announce shareholder return plans, creating a near-term catalyst.
• The auto sector has lagged the recovery and offers a rotation opportunity for gradual accumulation.
• Leveraged ETFs are dangerous due to new regulations impairing liquidity and price discovery, and should be avoided.
• Broad market breadth was extremely positive, with advancers dominating decliners on both exchanges.
• Short-term KOSPI target is 6,700, with further upside potential once that level is reclaimed.