Not surprisingly, the KOSPI was the most volatile major index globally last week, swinging in a nearly 12% range. The index closed the week down just ~1.7% but it felt far worse at times. This time the sell-off was driven by a global reassessment of AI valuations following the launch of China’s Moonshot Kimi K3 model, with the KOSPI hit particularly hard due to its heavy exposure to Samsung Electronics and SK Hynix. Also, the rise of leveraged ETFs tracking both stocks intensified the move, forcing mechanical selling into a falling market and accelerating the broader rout.
We feel bullish towards the KOSPI as the panic washout matures, but there are no technical buy triggers at this stage.
- We remain bullish towards the AI Buildout trade, liking the risk/reward towards the KOSPI below 7000, but it’s not for the fainthearted.
MM is bullish towards the KOSPI around 6700
Add To Hit List
