KOSPI rebound already started, expected to be '√-shaped', not 'V-shaped'

Seoul, South Korea – Hana Securities forecasts that the KOSPI, South Korea's benchmark stock index, will begin a "√-shaped" (root-shaped) recovery starting in August, diverging from expectations of a sharp "V-shaped" rebound. This outlook suggests a more gradual ascent rather than an immediate bounce back.

The analysis is based on several key factors. Firstly, stock prices have fallen to crisis levels, presenting a potential buying opportunity. Secondly, corporate profit outlooks are improving, indicating underlying strength in the economy. Lastly, the burden of rising US interest rates is diminishing, easing external financial pressures on the South Korean market.

Despite these positive indicators, Hana Securities cautions that the recovery may not be swift. The firm notes that foreign capital inflows and overall investor sentiment have not yet fully returned to previous levels. Consequently, after an initial rebound, the market is expected to follow a more moderate upward trajectory, reflecting a cautious optimism rather than a full-blown rally.

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The KOSPI's rebound has already begun... it will be a '√-shaped' (root-shaped) recovery, not a V-shaped one.