Even a sharp drop in interest rates is not good news…The 'one thing' the September stock market wants

Summary

Yeom Seung-hwan of LS Securities reviews the weak late-summer Korean market, arguing that the KOSPI has built firm 6,500 support through corporate buybacks and that investors should not panic-sell. He sees September as all about US rates: the market wants yields capped, not a sharp drop. He favors accumulating Samsung Electronics and SK hynix on intact memory fundamentals, watches Micron's earnings reaction as the next catalyst, and prefers AI data-center growth themes such as secondary batteries/ESS and construction, with banks only as defensive hedges.

• The KOSPI repeatedly defends 6,500 and is viewed as bottoming, with no need to cut stock exposure.
• Retail investors remain scarred and trading value is low; a meaningful rally still needs foreign buying.
• September is all about US rates: the market wants yields not to spike, while a sharp yield drop would signal recession or an AI capex pullback.
• SK hynix's Solidigm Nasdaq listing is not denied but remains one option and would be negative for shareholders without protection.
• Micron's late-September earnings reaction is the key catalyst for memory sentiment.
• Samsung Electronics and SK hynix are accumulation candidates because memory fundamentals and large buybacks remain intact.
• AI data-center themes favored include secondary batteries/ESS and construction; banks are only a defensive hedge.