◆Aju Economy Major News
▷"Retail Investors Show Unusual Behavior"... Are Buying Low and Selling High Patterns Changing?
- According to the Korea Exchange, individual investors purchased a net 7.465 trillion won on July 2, when the KOSPI index plummeted by 655.32 points. They continued to buy 3.5931 trillion won and 3.5222 trillion won on July 6 and 7, respectively, providing support against further declines.
- As the index dropped sharply, individual investors broke from their usual patterns and sold off 6.914 trillion won. In contrast, foreign investors bought a net 8.109 trillion won, absorbing the sell-off.
- The selling pressure from individuals also affected domestic semiconductor stocks. Samsung Electronics closed at 278,000 won, up 0.18% (500 won) from the previous trading day, but trading volume was only 29.7 million shares, far below the approximately 38.9 million shares on July 2 and 33.52 million shares on July 8.
- Kim Doo-eon, a researcher at Hana Securities, noted, "Unlike in the past, the recent drop in the index has been rapid, while the recovery has been weak and trading volume is low. This is due to a combination of concerns about high valuations, worries about leading stocks, and fears regarding the memory cycle outlook, all of which are weighing on investor sentiment."
- Choi Hyun-jae, head of the research center at Yuanta Securities, analyzed that the recent decline in stock prices is largely due to foreign investors realizing profits and rebalancing after a rapid rise in the KOSPI.
- Looking ahead, as the concentration in semiconductors eases, there is a higher possibility of a rotation into undervalued sectors relative to earnings. Choi suggested sectors with solid earnings such as shipbuilding, defense, and heavy industry, along with securities, department stores, consumer goods, and, in the short term, bank stocks due to interest rate hikes as potential candidates.
◆Major Reports
▷Strategic Significance of SK Hynix Listing [Shinhan Investment Corp]
- SK Hynix's American Depositary Shares (ADS) began trading on Nasdaq on July 10. The issuance of new shares aims to create a distribution volume exclusively for U.S. investors, establishing a separate price during U.S. trading hours.
- The bookbuilding process secured orders exceeding the public offering volume, confirming participation from large global institutions. This increases the likelihood that SKHY will trade at a higher level than the equivalent price of its Korean shares in the early days of listing.
- Domestic investors expect a natural path. If a high price is established in the U.S., it is anticipated that the Korean shares will follow suit, reducing the discount multiple compared to Micron.
- The key observation point is not just the initial day’s price increase. It will be crucial to see whether the high price established in the U.S. translates to the Korean shares or remains in the U.S. market, as this will determine domestic investors' profits and losses.
◆Major Disclosures After Market Close (July 9)
▷Jusung Corporation announces 15 billion won capital increase... allocated to BNP Jusung
▷HS Hysolid announces "additional acquisition of 34.5 billion won in shares of Belgian subsidiary"
▷Bitsrocell reports second-quarter operating profit of 19.6 billion won... up 21.3% from the same period last year
▷Hanjin reports second-quarter revenue up 14.4% to 847.8 billion won... operating profit down 22.4%
◆Fund Trends (as of July 8, excluding ETFs)
▷Domestic equity funds: +870.5 billion won
▷Overseas equity funds: +274.5 billion won
◆Today's Key Schedule
▷Meeting: Eurozone Finance Ministers' Meeting
* This article has been translated by AI.
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