July 7th Closing Market Review: Samsung Electronics' Record-High Performance is Useless... The Full Story of the Plummeting Market with Tangled Supply and Demand | Hong Seonae, Lee Kwonhee, Kim Jangyeol

Summary

The July 7th Korean market sell-off saw the KOSPI crash 4.91% and trigger a circuit breaker despite Samsung Electronics' record 89.4 trillion won quarterly revenue. The panel attributes the crash to forced selling by double-leveraged ETFs and fractured supply-demand. They discuss a tactical rotation from Korean memory chips to US hyperscalers, and highlight non-AI domestic sectors like cosmetics, bio, entertainment, and refiners as safe havens with strong earnings. LG Electronics and DND Pharmatech present specific buy opportunities, while Hanwha Ocean and defense stocks are monitored post-catalyst. A short-term technical bounce is expected, but the market remains in a correction until Big Tech earnings in late July.

• KOSPI crashed 4.91%, circuit breaker triggered due to double-leveraged ETF selling and foreign outflows.
• Samsung Electronics posted record 89.4 trillion won revenue but stock plunged, highlighting distorted supply-demand dynamics.
• Morgan Stanley note advised rotating from memory chips to hyperscalers; Lee Kwonhee aligns with this short-term view.
• Kim Jangyeol identifies non-AI real economy sectors (cosmetics, bio, entertainment, refiners) as defensive plays with strong earnings.
• LG Electronics' Q2 beat and data center cooling exposure offer re-rating potential to 20x PE.
• DND Pharmatech surged on convertible bond resolution, a clear near-term catalyst.
• Hanwha Ocean tumbled 20%+ after losing a Canadian submarine deal, but long-term fundamentals intact; watch for stabilization.
• Bank stocks like KB Financial serve as safe havens with dividends, while securities names lag.
• Panel expects a short-term technical bounce but cautions recovery needs confirmation from Big Tech earnings in late July.