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The KOSPI closed at 3152.18 on the 8th and rose 278.71 points last week alone, showing the largest weekly increase.
As the KOSPI continued to rally from last November and reached the 3100 level, concerns over overheating are also emerging, but major securities firms’ research centers predict that the KOSPI will continue to rise this week.
Kim Young-hwan, a researcher at NH Investment & Securities, cited expectations for additional economic stimulus in the U.S., the conversion of foreigners to net purchase, and the supply and demand conditions of individual investors as factors to increase the KOSPI.
Researcher Kim said, “The Democratic Party in the US Senate and the House of Representatives are all expected to win a majority vote, and the policy to expand fiscal expenditures planned by the Democratic Party will be promoted without unreasonableness.” “He said.
“It is expected that the dollar will weaken as the liquidity of the dollar is loose in the market. In general, in the phase of global economic improvement, foreign capital tends to flow into the stock market of emerging Asian manufacturing markets.” It suggests that foreign funds will flow into the market,” he added.
A positive outlook for corporate profits is also expected, which is one of the backgrounds for the KOSPI’s uptrend.
Park Seok-hyun, a researcher at KTB Investment & Securities said, “The KOSPI 12-month advance operating profit forecast, which rose 23% from June to the end of the year, continues to rise this year, and is expected to increase by at least 9% in the first half of the year.” “As of January, it recorded 187 trillion won. “The KOSPI trend has been revised upward by 4.9%, but it supports the upward trend of the KOSPI trend.”
The still plentiful stock market waiting funds can be used to gauge the supply and demand of individual investors called’Donghak ants’. According to the Financial Investment Association, on the 7th, investor deposits reached a record high of 69,271.9 billion won.
Han Ji-young, a researcher at Cape Investment & Securities, said, “As the KOSPI reached 3,000 units in a short period of time, you may feel fear of heights, but the momentum of the domestic stock market will not be damaged in a short period of time because the flow of money flowing enormously into the domestic stock market cannot be overlooked. I expect.”
Some predict that the KOSPI will settle at 3,000 units only when the profit fundamentals of companies improve.
Ahn So-eun, a researcher at IBK Investment & Securities, said, “Even in the past, abundant liquidity conditions served as a background for attempting a new level of stock indices, but stock indices were ultimately driven by profit fundamentals.” “There was a level of profit that wasn’t much different from before,” he said.
“Since Corona 19, profit differentiation by industry has intensified, but in terms of KOSPI overall, this year’s operating profit is expected to not reach the record-high level in 2017-2018.” “Even though the market consensus is formed like this, the KOSPI peaked in 2017-2018. It is greatly exceeding 2600 points, which means that concerns about overheating are inevitably accumulated.”
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