BNP Paribas: Volatility in the South Korean stock market complicates the fundamentals

Glonghui, July 29th | William Bratton, Head of Cash Equity Research at BNP Paribas, said that the volatility of the South Korean stock market highlights the disconnect between its tech companies and their earnings outlook. Bratton stated that so far this year, among the main Asian indices, the Korea Composite Stock Price Index accounted for 79% of the days when the index rose or fell by more than 5%. These fluctuations "make the market's appeal increasingly elusive." The sell-off appears to be driven more by anxiety over the sustainability of AI spending. We expect market volatility to remain elevated.