◆Aju Economic Major News
▷KOSPI experiences extreme volatility with an 8% drop driven by semiconductor stocks.
-The domestic stock market saw a decline of over 8% during trading, triggered by a sharp drop in semiconductor shares, leading to the activation of the circuit breaker for the sixth time this year.
-Despite Samsung Electronics reporting its highest-ever earnings for the second quarter, the market's perception that it did not meet expectations led to a surge in sell-offs, causing significant declines for both Samsung Electronics and SK Hynix.
-Warnings regarding the Korean stock market have also emerged from abroad, with Morgan Stanley forecasting a slowdown in momentum for semiconductor stocks, while the Wall Street Journal assessed that the Korean market is at risk of becoming a 'Squid Game.'
-Concerns have been raised that single-stock leverage products based on Samsung Electronics and SK Hynix are exacerbating concentration and volatility in specific stocks.
-Financial authorities are reviewing measures to strengthen investor protection for single-stock leverage products, with proposals for expanded investor education and raising minimum deposit requirements being discussed as potential solutions.
◆Major Reports
▷Building Momentum, Accelerating Growth Trajectory [Yuanta Securities]
-The domestic electric and electronics sector has faced adjustments since June due to concerns over AI investments and potential declines in substrate prices; however, this is viewed as a temporary phenomenon occurring during the earnings announcement gap, with the long-term investment rationale remaining intact.
-The core growth drivers of the industry, including increased demand for AI servers and capacity expansion, are still valid, and the related effects are beginning to be reflected in earnings.
-Earnings surprises exceeding market expectations are anticipated for the second quarter, particularly among large-cap stocks, which are seen as results of structural improvements rather than one-off events.
-Simultaneous increases in average selling prices (ASP) for server products, expanded orders, and capacity enhancements are collectively improving the earnings structure of electric and electronics companies amid the AI infrastructure investment cycle.
-Yuanta Securities maintains Samsung Electro-Mechanics as a top pick, expecting simultaneous improvements in the MLCC and FC-BGA sectors, while TLB, Isu Petasys, and Daeduck Electronics are highlighted as promising mid- to small-cap stocks.
◆Major Disclosures After Market Close (July 7)
▷Samsung Electronics to dispose of 344.5 billion won in treasury shares for employee compensation in the DX division.
▷Lasercell signs a semiconductor equipment supply contract worth 1.8 billion won.
▷Device enters into a display manufacturing equipment supply contract worth 25.7 billion won.
◆Fund Trends (as of July 6, excluding ETFs)
▷Domestic equity funds: +12.5 billion won
▷Overseas equity funds: -2.7 billion won
◆Key Schedule for Today (July 8)
▷United States: Wholesale inventories (May)
* This article has been translated by AI.
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