Macquarie: Driven by Samsung and SK Hynix, Kospi Index Expected to Rebound in the Short Term

Odaily Planet Daily News Macquarie analysts said in a report that driven by chip makers Samsung Electronics and SK Hynix, South Korea's benchmark index Kospi is expected to rebound in the short term. Analysts noted that the extreme volatility in July was mainly driven by these two stocks, which together accounted for 71% of the total market capitalization loss.

However, as foreign and institutional capital outflows stabilize, concentrated holdings are being repositioned, and margin balances remain at reasonable levels, market volatility is easing, with limited risk of sudden sharp fluctuations. Macquarie expects earnings revisions to push Kospi higher, with Samsung Electronics and SK Hynix overcoming concerns over peak demand and competition. They added that the rapid earnings growth of these two companies should translate into substantial returns for shareholders. Macquarie maintained its target of 8,000 points for the Kospi. (Jin Shi)