Lates News

Macquarie analysts stated in a report that the Korean benchmark index Kospi is expected to rebound in the short term, driven by chip manufacturers Samsung Electronics and SK Hynix. Analysts pointed out that extreme volatility in July was primarily driven by these two stocks, which together accounted for 71% of the total market capitalization losses. However, as the outflow of foreign and institutional funds stabilizes, concentrated positions are reallocated, and margin trading balances remain at reasonable levels, market volatility is easing, and the risk of sudden sharp fluctuations is limited. Macquarie expects earnings revisions to push the Kospi higher, with Samsung Electronics and SK Hynix overcoming concerns about demand peaking and increased competition. They added that the rapid earnings growth of these two companies should significant returns for shareholders. Macquarie maintains its target for the Kospi at 8,000 points.