KOSPI Forward P/E Hits 6.17x, Below 2008 Financial Crisis Level, on July 9

According to Daishin Securities report released on July 9, KOSPI's 12-month forward price-to-earnings ratio hit 6.17x, lower than the 6.27x level during the 2008 financial crisis, despite the benchmark index declining to the 7,200 level. Forward EPS actually rose to 1,174 points as of July 8, compared to 1,105 points at end-June, while valuations of semiconductors, machinery, shipbuilding, and construction sectors have expanded into undervaluation territory. The brokerage views the recent decline as a supply shock stemming from semiconductor concentration and deleveraging rather than deteriorating fundamentals, with June 14 U.S. CPI data and Q2 earnings season flagged as potential turning points.
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