Bullish on the surge in memory demand, HSBC raises South Korean stock market to "overweight"
HSBC will raise the Kospi index by about 5% to 3050 points. The memory market is expected to enter a "super cycle," with Samsung and SK Hynix stepping up
On the 26th, HSBC Holdings upgraded the South Korean stock market from "Neutral" to "Overweight", mainly due to optimism about the growth opportunities in the memory industry and government measures to increase valuations.
Strategists expect the recovery of the memory industry to drive a rebound in South Korean technology stocks, thereby boosting overall market performance.
Herald van der Linde, a strategist at HSBC Bank, pointed out in the report that companies in the memory industry should be able to "catch up with the rebound of technology stocks in the next few quarters and drive earnings growth".
The report also mentioned that the South Korean government's value-added plan aims to guide companies to increase shareholder returns, a policy that will help increase market attention and confidence in the South Korean stock market.
Based on these factors, HSBC has raised the target of the Korea Composite Stock Price Index (Kospi) by about 5% to 3050 points. The Kospi index has surged to its highest level since the beginning of 2022, reaching 2781.16 points at the time of writing.
Previously, Morgan Stanley pointed out in its research report that by 2025, the demand for HBM will increase significantly, with a supply shortage rate of -11%.
The memory market is expected to enter an unprecedented "super cycle", with Samsung and SK Hynix's market share further increasing