Abnormal Sell-Off Over? If You Invested According to 'This Condition,' Hold On No Matter What | Lee Jae-gyu, SK Securities PB Assistant Manager

Summary

Lee Jae-gyu, PB Assistant Manager at SK Securities, analyzes the steep Korean market sell-off, blaming forced deleveraging from leveraged ETFs and margin calls rather than fundamental deterioration. He advises cash-investors to hold or add to oversold large-cap stocks such as Samsung Electronics and SK hynix, points to a specific Hanwha Ocean trade with a stop-loss, and sees KOSPI support holding. He also expects crude oil to rise to $90-100/barrel on AI capex, and remains constructive on the semiconductor cycle.

• Korean sell-off driven by abnormal supply from leveraged ETFs and margin calls, not macro or earnings.
• Regulatory tightening and declining credit balances may normalize the market's supply-demand distortion.
• Samsung Electronics and SK hynix are significantly underperforming Micron, offering rebound potential as forced selling ends.
• KOSPI has held recent lows, suggesting support and a likely near-term bottom.
• Hanwha Ocean trade suggested with a stop-loss below 74,000 KRW based on intact LNG order momentum.
• Other oversold large-caps (Samsung SDI, LG Energy Solution, HD Hyundai Heavy Industries) near support offer bounce trades with defined risk.
• Oil expected to rally to $90-100/barrel if the AI investment narrative stays intact.
• Speaker emphasizes avoiding leverage and maintaining cash discipline in the current volatile environment.