Samjeon-Nix Fatigue 'Peak'... 'Still More to Buy' | Lee Jae-gyu, SK Securities PB Assistant Manager

Summary

Lee Jae-gyu, SK Securities PB Assistant Manager, argues that excessive divergence between large-cap semiconductors and the rest of the market will eventually normalize. He recommends buying KOSDAQ index and oversold large-cap stocks like Samsung SDI, Samsung SDS, and LS Electric, as well as sectors such as cosmetics, shipbuilding, entertainment, defense, and biotech. He remains bullish on Samsung Electronics and SK hynix but advises buying them on dips, while reducing some exposure to raise cash for better opportunities in laggards.

• KOSDAQ has fallen 33% and is deeply oversold, presenting a long-term buying opportunity.
• Samsung Electronics and SK hynix remain core holdings; any earnings-related dips are buying chances.
• Abnormal selling in large-caps like Samsung SDI, Samsung SDS, and LS Electric creates potential for mean-reversion rallies.
• Cosmetic stock Korean Kolmar is showing strong uptrend as sector rotation begins.
• Hanwha Ocean is rebounding, benefiting from shipbuilding and defense momentum.
• Entertainment names HYBE and SM offer favorable risk/reward with tight stop-losses.
• Korean defense stocks are still attractive thanks to NATO defense spending expansion.
• Biotech divergence with the US will close; stick to earnings-visible names Samsung Biologics and Celltrion.