[Seoul Market Close Briefing] KOSDAQ continues its Hanpuri rally on October 6th

KOSPI falls due to Samsung Electronics·SK Hynix for sale... Large-cap stock supply and demand burden

KOSDAQ breaks through 910 points... Foreign Investors and Institutional Investors are purchasing together in a circular sale of secondary batteries, subcontractors, and robots.

Key Market Trends

① The decline in oil prices is positive... Interest rates and dollar still burdensome

International oil prices fell due to the recovery of crude oil supply in the Middle East and Saudi Arabia's cut in Asian supply prices.

However, uncertainty in the Middle East continues, such as military clashes between Saudi Arabia and Houthi rebels, and stalled negotiations between the United States and Iran.

The 10-year U.S. Treasury bond interest rate also remains high at around 5.3%.

As political instability in France and Spain leads to a weakening euro and a strong dollar, it is a burden on domestic large-cap stocks.

② Samsung Electronics·SK Hynix properties for sale… Share Buybacks Ending Soon

As the end of Share Buybacks between Samsung Electronics and SK Hynix approaches, supply and demand pressures are highlighted.

Share Buybacks are set to end for Samsung Electronics this week and SK Hynix next week.

As Share Buybacks has received a significant portion of foreign sales, there is interest in supply and demand after the purchase ends.

There is a sell-off in two stocks amid overlapping caution ahead of Samsung Electronics' earnings announcement.

③ KOSDAQ breaks through 910 line... Large industry-oriented circular sales

Dispersing buying power through KOSDAQ, which is relatively free from the burden of supply and demand for large-cap stocks

Secondary batteries, semiconductor managers, robots, etc. are strong as foreign investors and institutional investors begin to buy together.

IT component stocks such as Samsung Electro-Mechanics and LG Innotek and stocks related to petrochemicals, solar energy, PCB, security, and quantum computers also rose.

In KOSDAQ, cyclical trading continues with large industries taking turns raising the index.

Supply and demand and industry

Foreign Investors are net selling electrical and electronic equipment, transportation equipment, etc. and net buying construction, medical precision, chemicals, and general services on KOSPI.

KOSDAQ net buys machinery, equipment, finance, and pharmaceuticals

Institutional Investors are net buying electricity, electronics, finance, metals, etc. from KOSPI.

KOSDAQ supported the index rise with net buying of machinery, equipment, electrical and electronics, and finance.

The Man's Perspective

The recent stock market rebound was largely due to the easing of existing bad news rather than new large-scale good news. As expectations for AI investment continue, the steep rise in interest rates and oil prices has slowed, creating conditions for the index to rebound.

For KOSPI, the supply and demand of Samsung Electronics and SK Hynix will be important for the time being. With the end of Share Buybacks imminent and the Samsung Electronics earnings announcement ahead, there may be volatility in the short term. However, both companies are continuing their performance improvement cycle, and expectations for additional shareholder returns remain.

On the other hand, KOSDAQ's stock market has been clear since September. Following semiconductor equipment and communication equipment, buying power is flowing into secondary batteries, robots, pharmaceuticals, etc. It appears that foreign investors and institutional investors are taking turns buying large-scale industries, thereby raising the index.

This is a section where the gap between supply and demand by industry increases rather than the general trend of the index. It is necessary to see whether circular selling continues, focusing on recently strong industries, stocks with improved performance in the second half of the year, and policy and investment-related stocks.

Source: Market Man’s Stock Story t.me/shmstory

YouTube: Sihwangman TV www.youtube.com/@blueoak1004

This article was rewritten from Shihwangman's Stock Story Telegram post with the author's consent. All content may contain errors and cannot be used as a basis for buying or selling as it is not a recommendation to buy or sell. The content of this post cannot be used as legal basis under any circumstances.