Foreign and Institutional Selling, Semiconductor Rebalancing

Foreign investors recorded net selling of approximately 70 billion won in the KOSPI market and 30 billion won in the KOSDAQ market. Institutional investors also offloaded about 1.2 trillion won in KOSPI and 50 billion won in KOSDAQ, putting downward pressure on the overall market.

The simultaneous expiration day, which occurs four times a year, tends to act as a short-term issue. Analysts suggest that investors have learned to withstand market volatility due to these recurring situations. Choi Won-beom, Manager, stated, “Since today is the simultaneous expiration day for futures and options, there were concerns about sell-offs, and they are indeed quite apparent this morning.”

Choi Won-beom, Manager, explained, “You should look at the remaining semiconductor rebalancing, but this is also a predetermined issue.” He noted that this is largely a short-term profit-taking event, and it could act as a positive signal in the long term, with favorable issues like Nasdaq rebalancing awaiting.

The movement of SK Square can be predicted by observing the ADR trend of SK Hynix, as the effect of SK Square's ADR listing and dividend expectations can positively influence its stock price. Choi Won-beom, Manager, analyzed, “Hynix’s support will likely hold at 1.8 million won. And for Square, those who saw Hynix’s ADR trend yesterday would know,” emphasizing the positive effect of SK Hynix’s support level on SK Square.

Choi Won-beom, Manager, commented, “I think the differentiation has already begun. Yes. It is almost happening now,” suggesting that a differentiation process is already underway. In this situation, attention is focused on the top three companies: Samsung SDI, LG Energy Solution, and SK Innovation. These companies are expected to maintain solid performance even in challenging market conditions, based on their technological prowess and market dominance.