Svmuu News: Following a recent sharp pullback, the South Korean stock market is attempting to rebound, but some analysts believe it will be difficult to reclaim previous highs within the third quarter. As the KOSPI’s margin debt remains at a relatively high level, market volatility may widen further, and the South Korean stock market is expected to continue trading within a range and searching for direction through 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 realistic to assume that the market will continue to consolidate within a range while searching for direction, a situation that may persist until the end of the year.” “ "The persistently high margin balance implies that high market volatility could further amplify index fluctuations," he added. "If the index falls further, we must also be wary of the risk of a margin sell-off triggered by margin position liquidations." (Jin Shi)