Citigroup has reduced its bullish bet on South Korea's KOSPI index, citing overheating and global rate risks.
The bank took profit on half of its long position in the KOSPI.
KOSPI has rallied 74% so far in 2026, driven by chip and AI stocks.
Citi noted that global rates broke out of key ranges, raising concerns about equity markets.
However, the bank said a severe selloff is unlikely, but risks warrant locking in gains.
Citi also pointed to rising yields in the UK and Japan, and higher oil prices due to geopolitical tensions.
The bank reduced exposure to Korean equities but retained half of the position for potential upside.
