KOSPI Reclaims 7,000 as Citi’s 10,000 Target Gathers Steam on AI Rebound

South Korea’s KOSPI index broke through 7,000 points Thursday, July 23, climbing 4.17% to 7,081.21 as tech shares extended a rally fueled by Alphabet’s earnings and a chip sector rebound.

The index failed to hold the same level a day earlier. It closed 0.74% higher at 6,797.70 after paring a 5% intraday surge. Thursday’s advance put the threshold to a fresh test.

KOSPI Rebound Builds on Alphabet Beat

Alphabet reported second quarter revenue of $119.8 billion, up 24% year over year, with Google Cloud growing 82%. The company also raised its capital spending forecast, reinforcing demand for artificial intelligence (AI) infrastructure.

Samsung Electronics and SK Hynix, the KOSPI’s two largest constituents, drove the gains. Both stocks extended last week’s rebound from an earlier AI-driven selloff.

The Kospi fell into a technical bear market recently, but after a few days of a rebound, some are expecting it to climb to new highs. Image Source: Trading View

Rising oil prices and lingering Iran-related tension around the Strait of Hormuz, a key shipping route, tempered the rally without derailing it.

Citi Holds Firm on 10,000 Target

The advance follows a note that maintains Citi’s 10,000 price target for the KOSPI. That target implies more than 50% upside from levels the index touched earlier this week.

Citi analysts called the recent pullback a potential buying opportunity, pointing to technical profit-taking rather than a shift in fundamentals.

The KOSPI has fallen as much as 28% from its June record high, part of a technical bear market that has triggered multiple circuit breakers and sidecars this year.

Thursday’s break above 7,000 still needs to hold. Wednesday’s reversal at the same level shows how fast the rally can fade, leaving open whether the month’s selloff has ended or just paused.

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