Is it an adjustment or overheating? The domestic stock market is caught in a vicious cycle... Debt-fueled investment increased further in the bull market

Summary

The Korean market closed volatile with KOSPI up 0.4% and KOSDAQ surging 4.7% driven by semiconductor equipment and bio. Experts highlighted bullish calls on SK hynix, chip equipment, department stores, power equipment, and selected KOSDAQ names, while cautioning on macro risks ahead of FOMC and geopolitical tensions.

• KOSPI ends slightly higher after sharp intraday swings; KOSDAQ jumps 4.7% led by semiconductor equipment stocks.
• SK hynix ADR listing catalyst and capex expansion send equipment makers surging (e.g., PSK, Hanmi Semiconductor, Jusung Engineering).
• Department stores like Hyundai Department Store and Shinsegae hit new highs on weak won-driven luxury spending and attractive valuations.
• Power equipment such as HD Hyundai Electric and LS Electric seen as oversold with global price hikes and strong order backlog.
• PCB/substrate stocks (Simmtech, Isu Petasys) benefit from AI-related shortages and extended lead times.
• KOSDAQ rebound expected with 30th anniversary policy catalyst; Alteogen rallies on patent resolution and royalty income.
• Shipbuilding and robotics sectors flagged as medium-term value plays with low valuations and long-term growth narratives.
• Upcoming FOMC, oil price risks, and Iran tensions keep market cautious despite positive stock-specific catalysts.