Goldman Sachs Flags KOSPI Break Above 7,000, Sees Next Resistance at 7,700

ChainThink reported that Goldman Sachs, in its latest MarketFeed note dated July 23, said foreign investors are rotating back into South Korean equities. The KOSPI jumped 4.4% on Thursday to finish above 7,000, marking a fourth straight session of net foreign buying. Weekly foreign inflows totaled $3.8 billion, the largest weekly net purchase on record. Goldman Sachs said demand has been heavily concentrated in AI-related and storage names. Roughly 87% of foreign inflows went into the technology sector, and about 91% of the sector's nominal trading volume was concentrated in Samsung Electronics and SK Hynix. The bank attributed the renewed interest in Korean assets to expectations that global AI capex will extend and deepen the memory upcycle. It added that the inflow comes after a meaningful deleveraging phase in the local market: the KOSPI is about 22% below its intrayear high, foreign ownership in South Korea's semiconductor sector has fallen to 50%—1.9 standard deviations below the post-2000 historical average—and margin loan balances have eased to $22 billion from a $25 billion peak. From a technical perspective, Goldman Sachs reiterated that 6,800 is the key 38.2% Fibonacci retracement support level. After stabilizing around that area and reclaiming 7,000, MACD turned higher, while RSI stood near 44.6, still below overbought territory. The next resistance is seen at 7,700, implying about 7.8% upside.