Macquarie: Driven by Samsung and SK Hynix, the KOSPI index is expected to rebound in the short term

TechFlow News, August 11, Macquarie analysts stated in a report that South Korea's benchmark index Kospi is expected to rebound in the short term, driven by chipmakers Samsung Electronics and SK Hynix. The analysts pointed out that the extreme volatility in July was mainly driven by these two stocks, which together accounted for 71% of the total market value loss.

However, as foreign capital and institutional fund outflows stabilize, capital with concentrated holdings is being reallocated, and margin financing balances remain at reasonable levels, market volatility is easing, and the risk of sudden sharp fluctuations is limited. Macquarie expects earnings revisions will drive Kospi higher, and Samsung Electronics and SK Hynix will overcome concerns about peaking demand and competition. They added that the rapid earnings growth of these two companies should translate into considerable returns for shareholders. Macquarie maintains its target for Kospi unchanged at 8,000 points. (Jin10)