Don't Be Fooled by the 2 PM Sell-Off: The Real Intentions of Foreign Investor Supply and Demand / August NAND Surges Again, Semiconductors Are Still Alive | CEO Lee Ji-hwan

Summary

Lee Ji-hwan, CEO of Aurora Investment Advisory, discusses the Korean market's repeated 2 p.m. sell-offs, arguing they are ETF rebalancing-driven shakeouts being bought by foreign investors. He sees semiconductor strength extending through year-end on HBM4 orders and surging NAND/DDR4 prices, with SK Hynix and Samsung Electronics favored over Micron. He also highlights AI infrastructure sectors such as power equipment, wires, optical communications and nuclear construction as US infrastructure stimulus plays, and views consumer discretionary and secondary batteries as buy-the-dip opportunities. Overall, he advises using September macro anxiety and retail selling to accumulate year-end leaders.

• 2 p.m. KOSPI sell-offs are viewed as ETF rebalancing shakeouts, with foreign spot buying and downside option liquidation signaling accumulation.
• SK Hynix and Samsung Electronics are favored over Micron on HBM4 order momentum and Micron redesign concerns.
• August NAND and DDR4 price increases are strengthening the memory cycle.
• AI infrastructure sectors—power equipment, electric wires, optical communications, nuclear construction—are advancing on US infrastructure stimulus and Korea-US nuclear talks.
• Samsung SDI and secondary battery names are seen as trading opportunities on ESS and solid-state battery momentum.
• Consumer discretionary and cosmetics are expected to regain momentum after the Chuseok holiday once oil pressure fades.
• Excessive retail selling may limit further KOSPI downside, and he suggests accumulating year-end leaders.