July 16th Closing Market Review: It's Not a Trend Reversal — What's the 'Real Meaning' of the Current Phase? | Hong Seonae, Lee Kwon-hee, Kim Jang-yeol

Summary

On July 16, KOSPI plunged 6.4% and KOSDAQ fell 4.5% amid persistent foreign and institutional selling. CEO Lee Kwon-hee argued the sell-off is not a trend reversal but an oversold opportunity, highlighting Samsung Electronics, cosmetics ODM stocks, shipbuilders, and semiconductor equipment as attractive buys. Center Head Kim Jang-yeol added Samsung Electro-Mechanics as a foreign accumulation play with strong earnings growth. Both stressed that negative sentiment is extreme but fundamentals remain intact, and patience is required.

• KOSPI closed down 6.4% at 6,820, KOSDAQ down 4.5% at 791; individual investors bought over 4.7 trillion won but could not halt the decline.
• Lee Kwon-hee noted foreign investors still hold a large net long position in futures, indicating smart money is not deeply bearish.
• Samsung Electronics was highlighted as oversold with 3.8x forward P/E and a favorable risk/reward skew favoring a rebound toward 300,000–400,000 won over further decline to 100,000 won.
• Korean cosmetics ODM stocks (Korea Kolmar, Cosmax, Cosmecca Korea, PharmaResearch, Silicon2) were recommended as a bottom-fishing opportunity fueled by a planned US K-beauty ETF and surging exports to North America.
• Shipbuilding stocks (Hanwha Ocean, HD Hyundai Heavy) have retraced to year-ago levels, presenting rebound potential if earnings or catalysts emerge.
• Kim Jang-yeol pointed to Samsung Electro-Mechanics, where foreign ownership rose during the selloff and an IBK report values it at 175,000 won, supported by 50%+ earnings growth.
• Negative news on data centers, LTA put options, and CXMT were fully priced in, but the actual fundamental damage is limited.
• Panelists advise selective buying and patience, as capitulation-like sentiment often marks market bottoms.