July 3rd Closing Market Review: Domestic Stock Market Digests Bad News...Sell on Crash, Buy on Rebound? The Identity of 'Supply and Demand' Shaking the Market | Hong Seonae, Lee Gwonhui, Kim Jangyeol

Summary

The panel reviews a wild session where KOSPI fell sharply in the morning on trade war and memory demand fears, then staged a strong recovery to close up 5.7%. Lee Kwon-hee argues the KOSPI's PBR fell to near-crisis levels without a real crisis, making it a buy, and highlights opportunities in securities, banks, defense, memory, autos, and biotech. Kim Jang-yeol explains pension rebalancing flows and stresses that panic selling is a mistake when fundamentals remain solid.

• KOSPI tumbled early on trade/memory rumors but rebounded 5.7% as institutions bought aggressively.
• Lee Kwon-hee says forward PBR fell to 6.5-6.6x, a level seen only in past crises, but current environment is not a systemic crisis, creating a buying opportunity.
• Bank of America explicitly declared the Meta memory order cut rumor unfounded, supporting a recovery in Samsung Electronics and SK hynix.
• Oversold Korean securities and banking sectors are attractive rotation plays as rate-hike fears ease.
• Defense stocks (Hanwha Aerospace, LIG Nex1, etc.) have strong order backlogs and NATO catalysts, making the recent dip a good entry.
• Celltrion and Samsung Biologics are trading at compressed multiples and are seen as bottoming with upside into autumn.
• Kim Jang-yeol notes NPS rebalancing will keep the market range-bound but does not alter the positive fundamental outlook.
• Leveraged ETF flows amplified the move; any regulatory change could reduce excess volatility and improve foreign sentiment.