Has the volatile market of sharp declines and sharp rises ended? What will be the new leading stocks that will determine H2 returns? | Lee Jaegyu, SK Securities PB Deputy Manager

Summary

Lee Jaegyu, SK Securities PB Deputy Manager, reviews the Korean market after the recent circuit-breaker rebound and argues the market is normalizing with more upside likely. He remains bullish on KOSDAQ, Samsung Electronics and SK hynix, and KOSDAQ-listed semiconductor suppliers, while also highlighting Samsung Electro-Mechanics, secondary batteries, and oversold large caps. He says the first rebound is mostly done, has raised cash to about 30%, and would avoid extremely aggressive buying until a new leadership sector emerges.

• KOSPI rebounded about 20% and KOSDAQ about 30% from their lows after circuit breakers.
• Lee's main theme is market normalization after forced liquidation of leveraged investors.
• He views CPI and jobs data as reducing September rate-hike concerns, which helps AI and semiconductor investment.
• He remains bullish on KOSDAQ due to expected passive inflows and resilient price action.
• He likes Samsung Electronics and SK hynix, and broadened his semiconductor view to KOSDAQ materials, parts and equipment names.
• He highlights Samsung Electro-Mechanics on MLCC momentum, secondary batteries on 2027 profitability, and oversold large caps such as Hanwha Aerospace, Naver, and LG Electronics.
• He reduced index ETFs and raised cash to about 30%, seeing the first rebound as largely complete and waiting for new sector leadership.