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

BlockBeats News, August 11th, a Macquarie analyst stated in a report that the South Korean benchmark index Kospi is expected to rebound in the short term, driven by the chip manufacturers Samsung Electronics and SK Hynix. The analyst 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 and institutional fund outflows stabilize, concentrated position funds are being reallocated, and margin trading balances remain at a reasonable level, market volatility is easing, and the risk of sudden excessive volatility is limited.

Macquarie expects that earnings revisions will drive the Kospi higher, and Samsung Electronics and SK Hynix will overcome concerns about demand peaking and competition. They added that the rapid earnings growth of these two companies should translate into significant returns for shareholders. Macquarie maintains its target for the Kospi at 8000 points. (FXStreet)