KOSPI Battles at 2,750 Amid Soaring Treasury Yields

Although yields have since fallen to the 5.1% range, the speaker cautioned against the overly rapid speed of the increase rather than the magnitude itself. With yields breaking above 5%, the attractiveness of bonds over stocks has increased. The speaker expressed concern that the sharp speed of the rate hike, rather than its scale, dampened investor sentiment, and that breaking above 5% diminished the appeal of stocks compared to bonds.

Yields briefly surged above 5.2% but have now settled in the 5.1% range. However, it was the excessively rapid pace of the increase, rather than the rise itself, that caused market concern. As yields broke above 5%, the investment appeal of bonds increased compared to stocks, raising the possibility of capital outflow.

WTI maintained at around $92, avoiding a sharp upward surge. This is attributed to reports that Saudi Arabia's crude oil exports increased by 80% compared to the previous month.

U.S. fleet escorts and expectations of negotiations with Iran also helped calm the surge in oil prices. The Middle East situation is likely to remain in a stalemate until the U.S.-China summit and the November midterm elections.

Microsoft's enhanced Copilot functionality is expected to lead to an expansion of the B2B market. As AI replaces office tasks like Excel, changes in the efficiency of roles such as analysts are also anticipated.

This growth in the AI industry has positively impacted the semiconductor market, with the Philadelphia Semiconductor Index rising 1.4% on Friday and SK Hynix ADR also increasing by 2.78%. Google's plan to launch low-orbit satellites equipped with TPUs also raises the possibility of new positive factors like space solar power.

The U.S.-China summit concluded without a joint agreement, leading to an assessment that its market impact was minimal. The two-month extension of rare earth-related sanctions was largely interpreted as a temporary measure ahead of the midterm elections.

While China partially eased tariffs on general consumer goods, it excluded advanced products, indicating no substantial progress. However, there is a possibility of a rebound in related stocks such as automobiles and secondary batteries after the summit.

A situation has been created where automotive and secondary battery-related stocks, which declined last week due to U.S.-China conflict concerns, can seek a technical rebound.

When bonds are valued at market price, a price drop results in a confirmed loss, leading to forced stop-loss selling (loss-cutting). This acts as a factor that exacerbates market selling pressure.

The situation is compounded as European banks operate derivatives using bonds as collateral, further increasing selling pressure. Experts are discussing ways to stabilize the market by considering a change in bond valuation methods to a hold-to-maturity (book value) approach.

Ahead of the ex-dividend date, focused net buying by foreigners and institutions drove the rise in Samsung Electronics' stock price. A trend of capital outflow from SK Hynix into Samsung Electronics has been observed. Foreigners net bought 1.2 trillion won, and institutions net bought 380 billion won, leading to the stock price increase.

This buying spree is analyzed as a move to receive dividends before the ex-dividend date. In particular, a trend of foreign capital moving from SK Hynix sales to Samsung Electronics was detected.

Institutions and foreigners primarily bought semiconductor Sooboojang stocks, including Jusung Engineering, TES, and Exicon.

Samsung Electro-Mechanics and LG Innotek are analyzed to be driving supply and demand, influenced by positive news related to substrates.

This is considered a significant achievement in the industry, as it is an approval for a rare cancer treatment.

The news of HLB's new drug approval contributed to an improvement in investor sentiment across the pharmaceutical and bio sectors, with related stocks like Alteogen and Rznomics showing a concurrent rise.

The global ESS (Energy Storage System) market is projected to grow to 1 terawatt-hour (1 TWh). The need for ESS as auxiliary power to maintain voltage in data centers is increasing.

Korean companies are expected to benefit from restrictions on the use of Chinese batteries due to the U.S.-China conflict. Samsung SDI is accelerating ESS expansion to capitalize on these opportunities.

Samsung SDI is accelerating ESS expansion and is expected to report strong third-quarter earnings. The growth of the ESS market is anticipated to be a significant growth driver for Samsung SDI.

This represents a 119% increase from the previous quarter.

The company is expanding its customer base through customized SSD controller technology for hyperscalers, and its track record of supplying to M7 companies serves as an important indicator validating Fadu's technological prowess.

SK Hynix is strengthening its collaboration with Fadu in the ESSD controller sector. This is interpreted as a strategy to enhance ESSD market competitiveness by utilizing Fadu's customized solution technology.

Ti-Robotics, a company specializing in robots for semiconductor factories, announced the expansion of its humanoid business, while Zeus, based on its semiconductor cleaning equipment technology, saw net buying from foreigners and institutions. For these Sooboojang companies, improvements in performance and securing orders are expected to be key factors for stock price rebounds.

Solidigm's IPO is projected to value the company at up to 200 trillion won. Despite some concerns about a 'split listing,' the market views it as a positive opportunity for the undervalued SSD division to be properly recognized for its potential. The company's value is discussed to reach up to 200 trillion won upon listing. While some express concerns about a 'split listing,' the prevailing view interprets it as a positive opportunity for the SSD division's potential to be properly evaluated by the market.

Solidigm's listing is expected to re-evaluate the value of SK Hynix's previously undervalued SSD business division and boost the company's overall corporate value.

If the stock price breaks above 230,000 won, further upward momentum is anticipated. LG Electronics was selected as an official partner for Nvidia's data center cooling solutions, securing upward momentum in its HVAC division. If the stock price breaks the 230,000 won mark, further momentum is expected. LG Electronics' stock price is expected to gain further upward momentum if it breaks above 230,000 won.

This partnership with a major tech company is expected to positively impact LG Electronics' expansion of its B2B solutions business. Meanwhile, the KOSDAQ's upward trend is also being maintained, centered on semiconductor Sooboojang and bio stocks.

Supply to TSMC, following Samsung Electronics and Micron, is creating a rebound momentum. An IBK report highlighted CMTech as the sole primary component vendor chosen by TSMC in Korea. This is expected to create a rebound momentum for CMTech's stock price as it will supply to TSMC after Samsung Electronics and Micron.

A comparison between LG Innotek and Samsung Electro-Mechanics also suggested that Samsung Electro-Mechanics holds an advantage due to its strengths in MLCC (Multi-Layer Ceramic Capacitors).