August 7 Closing Bell: Weakened Market Stamina... Excessive Pessimism Driven by Anxiety

Summary

On the August 7 closing, the KOSPI and KOSDAQ fell amid weak market sentiment and foreign manipulation using SK hynix. Kim Jang-yeol argued semiconductor stocks are near cycle-bottom valuations with AI demand intact, while Lee Kwon-hee identified selective opportunities in Samsung SDI (ESS-driven battery trading), Alteogen (royalty revenue), BGF Retail (defensive), and solar tariff plays. Both experts cautioned against chasing rallies and emphasized waiting for pullbacks.

• KOSPI and KOSDAQ closed lower with heavy foreign selling and some institutional buying, while individual stocks showed mixed breadth.
• SK hynix dropped on unconfirmed HBM-related rumors, but analysts and Kim Jang-yeol largely dismissed the panic.
• Kim Jang-yeol provided detailed valuation analysis showing Samsung Electronics, SK hynix, and Micron are at cycle-low P/Es, supported by robust AI capex commitments.
• Lee Kwon-hee highlighted Samsung SDI as the short-term trading leader in the second battery rebound, driven by the ESS theme and relatively cheaper valuation.
• Alteogen reported a strong earnings beat with royalties beginning to flow, marking its transition to a valued biotech royalty model.
• BGF Retail gained on good earnings and hot weather, reflecting a market rotation into defensive consumer names.
• US tariff on Chinese polysilicon derivatives created a WATCH setup for Korean solar names OCI Holdings and Hanwha Solutions, ideally on pullbacks.
• Both experts noted that retail investors should avoid chasing quick rallies in small/mid-cap recovery plays and instead buy on dips.