Daishin Securities Targets KOSPI at 11,500 Points by Mid-Q3 on Earnings Recovery

According to Daishin Securities, on July 6, the firm projects South Korea's KOSPI index to reach 11,500 points by mid-Q3, citing that recent market fears surrounding artificial intelligence and semiconductor sectors lack fundamental basis. Analyst Lee Kyung-min noted that even with the KOSPI trading at a 12-month forward price-to-earnings ratio (PER) of 9 times, the index can enter the 10,000-point era, while the April low of 7,300 represented extreme undervaluation at 6.32 times PER, near the 2008 financial crisis trough of 6.27 times.

The firm cited improving external conditions, including oil prices below $70, anticipated U.S. inflation moderation, and strengthening global equities in early July, as supporting factors. Q2 earnings season and upward earnings revisions for Q3 onward are expected to drive the rally.