Macquarie: Samsung and SK Hynix Drive Short-term Rebound in Kospi Index

Macquarie analysts stated in a report that South Korea's benchmark index, the Kospi, is expected to rebound in the short term, primarily driven by chip manufacturers 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. As the outflow of foreign and institutional funds stabilizes, concentrated holdings are being reallocated, and the balance of margin trading remains at a reasonable level, market volatility is easing, and the risk of sudden sharp fluctuations is limited. Macquarie expects that earnings revisions will drive the Kospi higher, with Samsung Electronics and SK Hynix overcoming concerns about demand peaking and competition, and rapid earnings growth should translate into substantial returns for shareholders. Macquarie maintains its target for the Kospi at 8,000 points.

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