SK Hynix to Buy Back 40 Trillion Won in Shares, Samsung Electronics' 100 Trillion Won Shareholder Return Policy Expected... Next Week's Stock Market Rebound Scenario Emerges

As the U.S. stock market declined, the domestic stock market also fell, but there was a concentration of supply and demand towards Samsung Electronics and SK Hynix (Samjeonnix). This led to strength in large-cap stocks in the domestic market, while other individual stocks saw their declines widen.

Manager Lee Chang-won stated, "While Samjeonnix carried the market, leading to a slight downturn in some parts, the concentration of supply and demand towards Samjeonnix resulted in greater declines for other individual stocks."

Nasdaq futures are showing a strong rebound after the close of the domestic stock market, which is expected to have a positive impact on the domestic market on Monday. This builds anticipation that concerns due to the global stock market decline may be somewhat alleviated.

Manager Lee Chang-won said, "Nasdaq futures are rebounding strongly right now after the domestic market closed. Very strongly. So, if the U.S. market ends well, the domestic market could be very good on Monday."

Ahead of Nvidia's Q2 earnings release on August 26, the market is maintaining downward rigidity. There is still anticipation for Nvidia's earnings in the current market, making it difficult for stocks to decline easily.

Manager Lee Chang-won explained, "Nvidia's Q2 earnings release is next week, on August 26. So, it's not easy to pull back. This is because there is still some anticipation for earnings in the current market, and with Nvidia's earnings on August 26 next week, it's hard to pull back."

Samsung Electronics is expected to announce a large-scale shareholder return policy, including special dividends and share buybacks totaling 90 trillion to 110 trillion won. This is based on an exclusive report by Bloomberg and is a shareholder-friendly policy favored by foreign investors.

Manager Lee Chang-won reported, "They are currently announcing that they plan to implement special dividends and share buybacks worth 90 to 110 trillion won."

SK Hynix is conducting a daily share buyback of 1 trillion won, which is a mechanical trade buying approximately 100 million won every 2 seconds. This large-scale share buyback acts as a powerful mechanism to block short selling and defend against stock price declines.

It also effectively absorbs profit-taking by individual investors, adding stability to the market.

Manager Lee Chang-won mentioned, "SK Hynix buys back 1 trillion won in shares every day, which is about 100 million won every 2 seconds. A person can't buy that much; a machine does it."

Currently, even when foreign investors take a selling position in the Korean stock market, they are not converting won to dollars and exiting the market. This is analyzed to be due to concerns about exchange rate losses from a falling exchange rate.

Instead, foreign investors are rotating stocks within the Korean market, continuing a cyclical rebalancing, indicating that they are not completely selling off and leaving the Korean stock market.

Manager Lee Chang-won explained, "The situation now is that even when foreign investors sell Korean stocks, they buy other things within Korea. They don't sell off the entire Korean market."

Samsung Electronics and SK Hynix are expected to surpass their previous highs, driven by ongoing anticipation for large-scale shareholder return policies. The upward trend of both companies is firm, and analysis suggests a breakout from the trading range is imminent.

Even if short-term corrections occur, the trend of upward movement remains valid, according to experts.

Manager Lee Chang-won asserted, "In my opinion, it's correct to assume they will return to their previous highs. They should break out of the trading range."

While Kospi moves slowly but shows a steady upward trend, Kosdaq, being relatively lighter, exhibits a volatile, rapid rotation, hitting lows and rebounding quickly. Therefore, when formulating investment strategies, it is important to observe and analyze both Kospi and Kosdaq.

Manager Lee Chang-won commented, "Kospi moves slowly but has a consistent trend. Kosdaq, being relatively lighter, turns around quickly after hitting a low."

Market attention is focused on the Jackson Hole Meeting, which will be held from August 27 to 29, as discussions about potential interest rate cuts may take place. In particular, one of the meeting's main themes is known to be financial innovation and payment policy implications, specifically related to stablecoins, leading to a surge in the crypto market, including Bitcoin.

Manager Lee Chang-won said, "The Jackson Hole Meeting might discuss the possibility of interest rate cuts. (Omitting part) The main theme of the Jackson Hole Meeting's opening is financial innovation and payment policy implications, which is related to stablecoins."

The main momentum for the stock market next week is expected to be concentrated on Nvidia's Q2 earnings release scheduled for August 26. The market anticipates Nvidia to provide revenue guidance of approximately $91 billion, with interest focused on data center revenue and Blackwell shipments.

Manager Lee Chang-won emphasized, "What's on August 26? It's Nvidia's Q2 earnings release."

Jensen Huang, CEO of Nvidia, recently emphasized the importance of Physical AI software and optical communication. Collaboration with LG CNS is underway in the Physical AI sector, and robot-related stocks like Robotis and Robostar are expected to benefit.

Furthermore, the accelerating shift from copper to optical fiber is further highlighting the importance of the optical communication industry.

In the semiconductor materials, parts, and equipment sector, Isu Petasys is considered a key beneficiary for Nvidia and Google TPU. Isu Petasys supplies essential 18-layer or higher ultra-high multi-layer PCBs (Printed Circuit Boards) for AI accelerators and AI data center servers.

In particular, its technological prowess is recognized as a co-development partner for Google TPU, and greater benefits are expected as AI-related growth momentum strengthens.

Manager Lee Chang-won explained, "Isu Petasys goes into AI accelerators and AI data center servers, right? It supplies 18-layer or higher ultra-high multi-layer PCBs."

Starting this December, the U.S. stock market is scheduled to transition to a 23-hour-a-day, five-day-a-week trading system. This is expected to significantly increase domestic investors' access to U.S. stocks, affecting capital flows.

With domestic investors able to invest in sound U.S. stocks and key Nasdaq stocks without time zone restrictions, a significant change in the global investment environment is anticipated.

Manager Lee Chang-won stated, "From December this year, U.S. stocks will switch to a 23-hour-a-day, five-day-a-week trading system."