SK Hynix's Important Price Level Even Collapsed... This Week's Rebound Will Determine Future Trends | Hong Seon-ae, Min Jae-gi KB Securities PRIME CLUB Team Leaders

Summary

KB Securities PRIME CLUB Team Leader Min Jae-gi analyzes the sharp drop in Korean markets. He points to SK Hynix earnings downgrades, Middle East tensions, inflation worries, ETF regulatory concerns, and drying liquidity as catalysts. He highlights that SK Hynix has fallen through a key moving average and that this week's rebound will determine if the semiconductor leadership trend remains intact. He also notes that the KOSPI now trades at crisis-level 6x forward P/E, suggesting patience and phased buying.

• SK Hynix sell-off driven by earnings downgrade fears but AI/memory fundamentals remain strong through 2026.
• Middle East tensions and rising US 10-year yields rekindled inflation worries ahead of CPI.
• Potential regulation of semiconductor ETFs added to Korean market liquidity concerns.
• Margin debt and customer deposits are declining, signaling weakening retail liquidity.
• SK Hynix broke below its 60-day moving average; recovery this week will determine if leadership is intact.
• KOSPI forward P/E fell to around 6x, matching levels seen during the 2008 crisis and COVID-19 lows.
• A stronger Korean won is needed to slow foreign selling and stabilize the market.