KOSPI Attempts to Break 7,000 Amid Foreign Buying

Despite achieving the status of the world's third-largest exporter of semiconductor equipment, the stock prices of domestic semiconductor materials, parts, and equipment (Sooboojang) companies have been stagnant. However, since last Friday, price changes have started to appear, and Lee Ji-eun, CEO of Ezystock, predicted a possibility of additional gains today.

CEO Lee stated, "Sooboojang companies' stock prices haven't moved much. But since Friday, decent prices have started to emerge, and I think it will lead to additional gains today," expressing expectations for Sooboojang stocks that have been suppressed until now.

The gradual advancement of AI technology is expected to lead to increased investment in memory semiconductors by enabling the market to rationally judge capital expenditures. The analysis suggests that high-performance memory demand, such as High Bandwidth Memory (HBM), is essential due to increased computation.

In particular, the successful launch of NVIDIA's Blackwell-based AI model is expected to alleviate market doubts and strengthen confidence in memory investment. CEO Lee Ji-eun explained, "Ultimately, if AI shows such gradual technological development, the market will start to judge capital expenditures as rational. In that case, spending on memory can also be further expanded," emphasizing that AI will be the key driver of growth in the memory semiconductor market.

This raises expectations that AI can create tangible demand beyond just a trend, potentially ushering in a new growth cycle for the semiconductor industry.

The KOSPI is expected to start around 6,900 points, with a possibility of breaking the 7,000-point mark. However, CEO Lee Ji-eun predicted that even if it breaks 7,000, it might be difficult to settle above it based on closing prices.

Various external variables, such as the upcoming US Consumer Price Index (CPI) announcement, Oracle's earnings release, and geopolitical risks, are expected to be key factors determining the market's direction this week. CEO Lee explained, "First of all, the KOSPI is expected to start at around 6,900 points, so I think today, it might gain momentum as the day progresses after opening. However, I actually believe that even if it breaks 7,000, it might be difficult to sustain it," advising a cautious approach.

While a strong won can be a positive factor for foreign capital inflow, it simultaneously raises concerns about short-term profit reductions for export-oriented stocks. CEO Lee Ji-eun mentioned that there are discussions about export stocks' performance potentially declining due to the strong won.

However, despite the possibility of a short-term operating profit decrease, there are also expectations that it can be sufficiently offset by product mix improvements or other factors. CEO Lee stated, "While the stronger won has some positive aspects for foreign capital inflow, there are various discussions about export-oriented stocks these days due to the strong won trend. That is, there are talks that the performance of export stocks might decrease slightly."

It has been revealed that most of the credit loan restrictions imposed by securities firms on Samsung Electronics and SK Hynix in the past have been lifted. CEO Lee Ji-eun analyzed that this seems to be leading individual investors to increase direct investments using credit loans.

This indicates a shift in individual investors' patterns, favoring leveraged investment in individual stocks over ETFs. CEO Lee said, "Previously, Samsung Electronics and SK Hynix were blocked by credit. But most securities firms have now lifted the credit restrictions. So, it seems many people are utilizing this."

LG Electronics is strengthening its technological position in the robot industry by successfully developing its own robot actuator. According to CEO Lee Ji-eun, LG Electronics has developed a driving actuator called 'Axiom' based on 60 years of accumulated motor technology, and is currently in discussions with big tech companies for mass production and orders.

This news is positively impacting the stock prices of not only LG Electronics but also related robot stocks such as Robostar. CEO Lee reported, "What news did LG Electronics have over the weekend? They were developing a robot actuator, and they are now developing Axiom as a driving type. They said they are discussing mass production and such with big tech companies."

The actuators developed by Robotis are planned to be applied to Microducts, 15 units per Microduct, which is expected to significantly contribute to Robotis's upward revenue trend. CEO Lee Ji-eun mentioned that Robotis's technology could also be linked to robot subsidiaries related to NVIDIA's equity investment.

Particularly, if the growth of the Chinese robot market accelerates, related companies such as Unitree are also expected to benefit. CEO Lee stated, "Actuators will be installed in Microducts... Robotis actuators will be installed in these Microducts. It is said that about 15 units will be installed per Microduct," emphasizing Robotis's technological superiority.

As the world's elderly population surpasses the infant population, the importance of the robot industry is being highlighted. Demand for robots that can solve the labor shortage in an aging society, such as domestic helper robots and care robots, is expected to continuously increase.

Simultaneously, the expansion of global data center investment, with Japan planning 10 trillion yen in data center investments over 8 years, is also cited as a key factor driving the growth of the robot industry. CEO Lee Ji-eun explained, "In the robot sector, the world's elderly population has now surpassed the infant population... globally. Because of such discussions, the importance of robots... talks continue about how robots can fill the parts that people find difficult, such as domestic helper robots and, further down the line, care robots," emphasizing that robots will be a core solution to societal problems.

As AI servers and switch data centers continue to become more advanced, PCB materials are also expected to be upgraded. This will lead to a significant increase in demand for high-spec Copper Clad Laminate (CCL), which is expected to positively impact Doosan's CCL business.

According to a Meritz Securities report, high-spec CCL is priced 2 to 8 times higher than mid-to-low-end products, contributing significantly to Doosan's earnings improvement. CEO Lee Ji-eun explained, "Today, a positive securities report came out regarding Doosan's CCL... If AI servers, switches, and data centers continue to be high-spec, PCB materials will also be upgraded. So, based on that, high-spec CCL is needed, and high-spec CCL ultimately leads to price increases."

On the domestic stock market today, foreigners are leading the market with a net buying of approximately 700 billion won on the main exchange. In contrast, foreign selling was observed in the KOSDAQ market, but the volume was not significant.

Notably, there is strong selling by individual investors. CEO Lee Ji-eun analyzed that many individual investors experienced fear and loss of trust due to market declines after July, and as stock prices rebounded to some extent, a sentiment of "let's get out quickly" is at play. In particular, investors who used credit loans are conspicuously liquidating their holdings.

CEO Lee explained the complex supply and demand situation of the current market, stating, "Today, foreigners are showing about 700 billion won in inflows to the main exchange. And while they are selling some in KOSDAQ, the volume isn't large, and individual investors are selling a lot... They struggled. As prices rose to a certain extent, they thought, 'Let's get out quickly.' And those who used credit are trying to tidy things up."

CEO Lee Ji-eun advised individual investors on psychological response strategies in a volatile market. If one needs to sell stocks today, she recommended setting a sell order at a price slightly higher than the original target price.

This strategy aims to realize profits at a slightly better price by leveraging momentary market volatility. CEO Lee provided a specific example, saying, "However, if you are selling today, I recommend setting it slightly above your original target price. If you decided to sell at 150,000 won, set it around 158,000 won."

While concerns about the extinction of South Korea's growth engine were once dominant, recent changes in the semiconductor industry's atmosphere have led to a positive shift in the long-term outlook for the Korean market. CEO Lee Ji-eun mentioned that improvements in the semiconductor industry are offering new hope for the Korean economy.

This could serve as an opportunity to reopen investment possibilities in the Korean market from a long-term perspective. CEO Lee explained the background of this perception change, stating, "At one point, many people psychologically thought that South Korea's growth engine was fading, making it difficult to place long-term hope in our country, but looking at the current semiconductor atmosphere, that might not be the case."

This change reflects the expectation that the semiconductor industry, a core driver of the Korean economy, can gain an advantage in global technological competition and create new growth momentum.

Market evaluations for Hanmi Semiconductor are divided between concerns about competitors' pursuit and its unique technological superiority. Some express concerns that market share could be eroded by the entry of competitors such as Samsung Electronics or Hana Micron.

On the other hand, others view Hanmi Semiconductor positively, citing its overwhelming superiority in TC bonder technology and the momentum from orders for space solar power equipment related to Elon Musk. CEO Lee Ji-eun introduced both perspectives, stating, "Opinions on Hanmi Semiconductor are divided. Some are uncomfortable due to the appearance of competitors potentially eroding market share, while others are positive, citing its significant technological lead, strong performance in TC bonding, and momentum from space solar power equipment orders."

Thus, while Hanmi Semiconductor is recognized for its growth potential based on core industrial technology, there is also active discussion about whether it can maintain market dominance amid an intensifying competitive environment.

Investors who have made short-term entries into AI semiconductor materials, parts, and equipment (Sooboojang) stocks should consider profit-taking or reducing their holdings upon reaching the technical resistance levels observed on weekly and daily charts. CEO Lee Ji-eun advised watching these movements at resistance levels.

However, if the AI semiconductor sector as a whole continues a strong rally with trading volume, holding strategies could also be considered. Despite weak earnings in the first half, expectations for improved earnings in the second half still persist. CEO Lee advised, "For those who entered short-term, it would be good to consider profit-taking while watching the movements at these resistance levels."

Shipbuilding stocks, including HD Hyundai Heavy Industries, are expected to maintain a long-term uptrend based on solid order backlogs and good performance. However, CEO Lee Ji-eun pointed out the lack of additional momentum as the market desires new changes.

Technically, whether the 400,000 won support level is broken is a crucial point of observation. Long-term investors with small holdings might consider a strategy of maintaining their current positions. CEO Lee explained, "Shipbuilding is expected to go up in the future. This is because order backlogs are solid, and numbers are good, but it seems the market wants to see new changes."

Beauty tech company APR is facing market concerns amid a controversy over counterfeit ingredients detected in Singapore. CEO Lee Ji-eun analyzed that despite APR stating there were no official exports, the detection of ingredients in counterfeit products suggests that counterfeit distribution is occurring externally.

This could negatively impact the company's brand value and stock price management. In particular, there are concerns that if the 380,000 won support level is broken, stock price recovery could be prolonged. CEO Lee stated, "They said there were no official exports, but ingredients were detected. That suggests that counterfeit exports are happening externally," emphasizing that the counterfeit distribution issue will be a significant market challenge for APR.

The issue of counterfeit products in overseas markets is an area difficult for companies to control, but prompt and effective response is essential for managing stock price risks.