Korean Analyst: Korean Market Likely to Remain Range-Bound Until Year-End

Odaily reported that the Korean stock market is attempting to rebound after a recent sharp correction. However, some analysts believe it will not be easy to recoup previous highs within the third quarter. As KOSPI margin debt remains at elevated levels, market volatility could expand further. It is expected that the Korean stock market will maintain a range-bound, direction-seeking trend until the end of the year.

Kim Jun-young, a researcher at iM Securities, stated in a report on the 20th: "Rather than expecting the KOSPI index to return to its previous highs within the third quarter, it is more likely that the market will remain in a phase of range-bound consolidation and direction-seeking, a scenario that could extend until the year-end." "The persistently high margin debt levels imply that elevated market volatility could further magnify index fluctuations," he added. "If the index falls further, we also need to be wary of the risk of credit selling triggered by margin call liquidations." (Golden Ten)