July 8, 2024 Afternoon Broadcast: Samsung & SK hynix Hit by Peak-Out Fears; Individual Investors Baffled by Conflicting Forecasts, Sell-Side Circuit Breakers Triggered on Both Exchanges

Summary

On July 8, 2024, KOSPI and KOSDAQ both plunged over 5%, triggering sell-side circuit breakers for the second straight day. Panic selling by retail investors, combined with persistent semiconductor peak-out fears and a flare-up in the Iran Hormuz news, drove the collapse despite Samsung Electronics posting record quarterly profits. Guests Lee Kwon-hee and Jang Ho-jin argued the sell-off is an overreaction, pointing to aggressive foreign buying and put selling as signals of an imminent rebound, and highlighted bargains in Samsung, SK hynix, LG Electronics, Kia, banking, and NCSOFT. Later, Park Byung-chang noted rotation potential into cosmetics, entertainment, and securities stocks. A separate segment with Choi Chang-kyu detailed the strong ADR listing catalyst for SK hynix.

• KOSPI -5.35% to 7,246, KOSDAQ -5.56% to 785, both hitting sell-side circuit breakers.
• Retail investors panic-sold over 6,700 billion won in KOSPI spot, while foreigners bought 3,700 billion won across cash and futures.
• Lee Kwon-hee stressed record Samsung earnings, foreign put selling, and predicted a strong technical bounce.
• Jang Ho-jin identified bargain opportunities in LG Electronics, Kia, KB/Shinhan Financial, and NCSOFT.
• Park Byung-chang highlighted cosmetics (APR), entertainment (Hybe), and securities (NH Investment) as second-half rotation plays.
• Choi Chang-kyu detailed the SK hynix ADR listing on July 10 as a major re-rating catalyst similar to TSMC's ADR experience.
• Lee Kwon-hee noted a contrarian chance in Korean biotech, which has diverged from the all-time high US biotech index.
• The show urged investors not to panic sell at deeply oversold levels and to wait for an expected rebound.