Samsung Electronics-SK Hynix Could Rally Again... Why You Must Avoid 'Peripheral Stocks' in a Rotational Market | Hong Seon-ae, Park Byeong-chang, MP Partners CEO [Yeouido Insight]

Summary

Park Byeong-chang discusses the KOSPI's technical recovery path after the July crash, arguing that holding 6,500 opens the way toward 7,500, with Nvidia earnings as the near-term catalyst. He sees Samsung Electronics and SK hynix as higher by year-end on memory earnings despite a supply overhang, and he would buy sharp Nvidia-driven dips. In the current rotational market, he advises avoiding peripheral stocks and trading only the strongest sector leaders, such as nuclear, battery, and cosmetics leaders, on volume-dry pullbacks.

• KOSPI held 6,500 and shows a short-term upward turn within a weak market, with a target of 7,500.
• Nvidia has already pulled back, so Park sees more limited downside and would treat a post-earnings plunge as a buying opportunity.
• Samsung Electronics and SK hynix are seen as undervalued on rising DRAM and memory prices, though heavy supply overhang may delay immediate upside.
• The shareholder-return disappointment is viewed as a sideshow rather than the main reason to avoid Samsung and SK hynix.
• Current rotation is driven by limited liquidity, so peripheral stocks should be avoided.
• Tradeable setups are strongest one or two names in each hot sector, bought on pullbacks with shrinking volume.
• Examples cited include KEPCO E&C and Hyundai E&C in nuclear, Samsung SDI and L&F in batteries, and Korea Kolmar in cosmetics.