Macquarie analysts said South Korea's benchmark Kospi index is likely to rebound in the near term, supported by chipmakers Samsung Electronics and SK Hynix. In a report dated Aug. 11, the analysts said July's extreme volatility was mainly driven by those two stocks, which together accounted for 71% of the market's total capitalization losses. They said market turbulence is easing as foreign and institutional fund outflows stabilize, concentrated holdings are reallocated and margin financing and securities lending balances remain at reasonable levels, limiting the risk of sudden sharp swings. Macquarie expects earnings revisions to lift the Kospi, and said Samsung Electronics and SK Hynix should overcome concerns about peak demand and competition. The analysts added that the companies' rapid earnings growth should translate into substantial shareholder returns, while maintaining an unchanged Kospi target of 8,000.