[Asia Economy Reporter Oh Ju-yeon] On the 2nd, as the KOSPI surpassed the 2670 mark during the session, setting a new all-time high, steel stocks also joined the rising rally, drawing attention.
As of 9:45 a.m. that day, the KOSPI recorded 2688.58, up 1.30% compared to the previous trading day. The KOSPI started the day 0.41% higher than the previous day but expanded its gains to soar to 2675.28 during the session, breaking the all-time record.
In the KOSPI market, individuals sold a net 127.2 billion KRW and institutions sold a net 112.5 billion KRW, while foreigners bought a net 250 billion KRW, driving the index.
With growing interest in cyclical stocks following the development of the novel coronavirus (COVID-19) vaccine, steel stocks are also showing a rising rally, attracting attention.
On this day, POSCO traded at 250,000 KRW, up 1.83% from the previous day, hitting a 52-week high during the session. POSCO's stock price had been on a downward trend due to last year's sluggish business conditions and this year's impact from COVID-19. The stock price, which had reached the 400,000 KRW range in 2018, was halved, but recently, news of vaccine development and expectations for economic recovery have continued to push the stock price upward.
NH Investment & Securities forecasted that POSCO's consolidated sales for next year will increase by 1.2% year-on-year to 57.6422 trillion KRW, and operating profit will rise by 45.6% to 3.5277 trillion KRW.
Hyundai Steel, whose stock price was in the 70,000 KRW range in 2018, is gaining momentum linked to the hydrogen car issue. Hyundai Steel's stock price rose 16% from 28,900 KRW on October 30 to 33,700 KRW as of 10 a.m. that day.
According to the World Steel Association (WSA), global nominal steel demand is expected to increase by 4.1% in 2021 compared to the previous year.
Byun Jong-man, a researcher at NH Investment & Securities, said, "Although the COVID-19 pandemic continues, expectations are high for vaccine and treatment development next year and for increased steel demand."
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