00:03Cospi closed at 6,956.83 Tuesday, up 0.73%, one day after an 8.95% plunge tripped a
00:16circuit breaker.
00:19Goldman Sachs says leveraged ETF programme selling, not fundamentals, amplified that crash.
00:26Short pressure on SK Hynix has already peaked, with borrowed shares down 24% from their record.
00:35Retail investors bought all six of this month's down sessions.
00:41Four flow signals, one rebound. It's Wednesday, July 15th. Here's what investors are watching in Korea today.
00:51Two crashes this month have cut the Cospi nearly 20%, and global banks spent the week dissecting the damage.
00:59Their verdict points to mechanical selling from leveraged funds, rather than a fundamental break in the semiconductor story.
01:08Four of Korea's 10 most-traded products are now single-stock leveraged ETFs, so volatility is wired into the market's
01:18own plumbing.
01:20Here's what the numbers show.
01:23Foreigners and institutions dumped a combined 3.9 trillion won, about $2.8 billion, in Monday's crash, with programme trades
01:34at 45.4% of the flow.
01:37Both flipped to buying Tuesday, and programme net purchases hit 1.07 trillion won, roughly $770 million, through a 500
01:50-point intraday swing.
01:52Goldman Sachs traced the outsized drop to leveraged ETF selling, a segment now managing about $175 billion globally.
02:03Morgan Stanley raised 2027 and 2028 big tech capex forecasts by 9-10%, arguing the memory cycle is not finished.
02:17SK Hynix's short balances collapsed to 22.1 billion won, about $16 million, under 0.01% of market cap,
02:30versus 0.07% at end June.
02:34Retail investors net bought $4.15 trillion won, roughly $3 billion, across July's six down sessions.
02:44So, what does this mean for global market watchers?
02:50Earlier, we said Goldman blames machines, not fundamentals.
02:55Here's what that means for positioning.
02:58Mechanical selling exhausts itself once programme flows reset.
03:03With Hynix short pressure unwound and retail cash absorbing declines, the setup leans towards stabilisation, rather than fresh capitulation.
03:13Tomorrow, watch foreign net buying and the programme trading share.
03:18A second straight positive print would confirm the turn.
03:23That's today's AI Prism, Markets Daily.
03:27This episode was produced with AI Assistants, based on Seoul Economic Daily reporting, and reviewed by a human editor.
03:36AI Prism is a Juan IFRA award-winning series.
03:40We'll be back tomorrow.
03:42Intro
03:43Core
03:43Copyische
03:43Pay
03:43Pardons
03:43Oi
03:43Oi
03:44Oi
03:45Oi
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