The Global Point

Research evidence excerpt

The Global Point

Point |

Tuesday, 21 July 2026

Asia | CEEMEA | Latin America | Western Europe | Key Rating and Target Price Changes

Asia

South Korea Multi-Asset - KOSPI at Record-Low Valuation: Peak Headwinds,

Powerful Tailwinds Ahead

Citi’s South Korea economist and equity analysts have coordinated to assess the

potential for a rebound in the Korean equity market. Economics View: We

highlight that headwinds from capital flows are likely subsiding, while tailwinds

from Korea's strong economic fundamentals and market-friendly policy mix are

gathering force. Equity Research View: We maintain our KOSPI target of 10,000,

supported by strong tailwinds. These include solid memory sector fundamentals

and historically attractive valuations.

Jin-Wook Kim | Peter Lee | Jayden Oh

KOSPI 12-month Forward PE: As of July 16th, Fund flow into KOSPI-related passive ETFs has

KOSPI at 12-month forward PER recorded at accelerated since July 9th

5.8x, compared with 6.4x in October 2008

(GFC), and 8.5x in March 2020 (Covid)

(US$, Mn share) ISHARES MSCI SOUTH KOREA ETF (US$mn) KOSPI 12M-Fwd. P/E Avg. +1 S.D. +2 S.D. -1 S.D. -2 S.D.

240 1200

16.0x 15x

14.0x 14x 14x

180 600

12.0x

10.0x 300

8.0x 120 0

6.0x 6x 6x -300

4.0x 60 -600

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26

Fund Flow (US$mn) (RHS)

Current Shares Outstanding (Mn share) (LHS)

Net Asset Value per share (US$) (LHS))

Asia Pacific Airlines - Adding Long Haul Premium Beta – Upgrade Cathay to Buy

as APAC Airlines Top Pick

We see an enhanced investment thesis relative to our Jan26's constructive view on

APAC airlines. In short, (i) passengers’ ability to absorb higher ticket prices