Korea Pre-Market Morning Briefing: Machinery & Industrial Materials Focus Amid Macro Volatility

### 1. Macro Environment and Open Direction Check Overnight global financial markets maintained macroeconomic volatility, with the USD/KRW exchange rate at 1,366.6, the US 10-year Treasury yield at 5.11%, and WTI crude at $94.40/bbl. Federal Reserve net liquidity stood at $5,770.0B. Screening of the Korean market indicates a clear common thesis governing capital flows. Breakout leaders concentrated in machinery, general industrial manufacturing, and steel/industrial metal sectors, driven by export/FX benefits and order backlog surges. Technically, these names showed average 1-month gains of +3.2% and volume surges averaging 1.4x the 20-day average while breaching upper resistance levels . Conversely, breakdown candidates in construction, machinery, and biotech shared vulnerabilities to prolonged high interest rates and margin compression. ### 2. Core Momentum Stocks Aligned with the Common Thesis **LS-Eco Energy (229640.KS)** Belonging to the machinery and industrial manufacturing sector, this stock surged 32.2% over the past month, breaking above upper resistance. The current price is 64,000 KRW with volume at 2.8x the 20-day average. The upper resistance is 67,800 KRW and the lower support is 59,600 KRW. Chasing rallies at the open should be avoided in favor of staged entries near support. **SNT Energy (100840.KS)** Supported by recent HRSG supply contract announcements, the stock has maintained an upward trajectory. The current price is 36,700 KRW with a daily change of -4.68%. Upper resistance is 40,550 KRW and lower support is 36,500 KRW. Short-term strategies should verify support at 36,500 KRW. **Samsung Electronics (005930.KS)** As a flagship semiconductor stock, Samsung Electronics trades at 285,500 KRW, up +3.25% with volume at 1.2x the 20-day average. Upper resistance is 288,000 KRW and lower support is 189,200 KRW. Chase buying is discouraged near resistance levels. ### 3. Downside Risk and Restricted Purchase List **Nuon (123840.KQ)** Operating in the health supplement and biotech sector, Nuon has experienced internal shareholding disclosures. Trading at 1,750 KRW with volume at 0.3x the 20-day average, it remains range-bound. Watch for potential breaches of the lower support at 1,355 KRW while upper resistance sits at 2,325 KRW. **Dongsin Construction (025950.KQ)** Belonging to the construction sector, Dongsin Construction faces selling pressure from recent highs, trading at 9,880 KRW (-1.10%). Upper resistance is 13,840 KRW and lower support is 8,170 KRW. Weakening front-end demand warrants a reduction in exposure on bounces. **BQ AI (148780.KQ)** In the internet software and AI solutions sector, BQ AI faces concerns regarding recurring losses and cash flow slowdowns. Trading at 3,755 KRW (-4.21%), upper resistance is 6,420 KRW and lower support is 1,850 KRW. New positions are strictly restricted until earnings visibility improves. ### 4. Portfolio Management Principles and Risk Guidelines Trading should be strictly selective, focusing on export and order-driven stocks displaying high trading volume during the opening bell. Vulnerable companies and those exhibiting breakdown signals under high interest rate pressures must be excluded from portfolios. Portfolios should concentrate on core leading stocks while maintaining adequate cash reserves to manage sudden macroeconomic shifts. Mechanical risk management based on stop-loss levels and support breaks must be strictly enforced.