[Good Morning Stock Market] Will the 'KOSPI 3000' Era Open for the First Time in History?... Market on Alert on the 6th

[Asia Economy Reporter Oh Ju-yeon] The KOSPI is increasingly likely to enter the 3000 range for the first time in history. With securities firms each projecting this year's market ceiling above the 3000 mark, the KOSPI closed at 2990.57 on the 5th, leaving only about 10 points to reach 3000. Despite the US stock market dropping over 1% at the start of the new year, the domestic market has steadfastly continued its upward trend. Following the US market's positive close the previous day, investors' expectations for the domestic stock market on the 6th are growing significantly.

The KOSPI has reached just below the 3000 mark. On the 5th, the KOSPI closed at 2990.57, up 46.12 points (1.57%) from the previous day. It has risen for seven consecutive trading days and set new all-time highs for six consecutive trading days, showing unstoppable momentum. The photo shows the KB Kookmin Bank dealing room in Yeongdeungpo-gu, Seoul on that day. Photo by Hyunmin Kim kimhyun81@

◆ Sangyoung Seo, Kiwoom Securities Researcher = The Korean stock market on the previous day saw a concentrated demand as individual investors actively favored semiconductors, expanding gains toward the close and bringing the KOSPI to the brink of 3000 points. Meanwhile, in the US market, the Philadelphia Semiconductor Index rose 1.94% due to an upward revision of Micron's target price, raising expectations that it will surpass 3000 early in the session.

Meanwhile, the Georgia state election is being counted during trading hours, and if the Democrats win as the market expects, it is anticipated that value stocks will see expanded gains. Additionally, the weak dollar and rising international oil prices are expected to positively influence foreign investor demand, which had recently been selling off, making the outlook favorable.

However, concerns about high valuations may persist, so rather than expanding gains, it is expected that after surpassing 3000 points, there will be a process of digesting sell-offs. In particular, issues from the US market such as the significant upward revision of Micron's target price affecting the semiconductor sector, the surge in international oil prices and rising government bond yields impacting energy and financial sectors, improvements in US manufacturing indicators affecting related companies, December US automobile sales trends impacting the automotive sector, JP Morgan's forecast of Bitcoin reaching $146,000, and the downward revision of investment opinions on the solar energy sector are expected to drive a stock-specific market.

◆ Jeonghoon Seo, Samsung Securities Researcher = On the 5th (local time), the New York stock market rebounded after the initial decline on the first day of the new year. Strong major economic indicators played a key role. Although the Georgia Senate election began, investors remained calm and observant. On that day, the S&P 500 rose 0.71%, the Dow Jones Industrial Average increased 0.55%, and the Nasdaq, which has a high proportion of technology stocks, climbed 0.95% compared to the previous day.

The Philadelphia Semiconductor Index rose 1.94%, recording a relatively high increase. All companies in the index except one rose that day. Among them, Micron Technology (4.3%) and Lam Research (3.5%) showed notable gains.

Large-cap technology stocks also rose together. Apple, Amazon, Facebook, and Alphabet showed gains around 1%, while Microsoft showed a slight increase. Major banks such as Goldman Sachs and Citigroup also showed strength with gains in the 2% range.

On that day, WTI crude oil prices rose 4.9% in one day, closing at $49.9. This influenced energy-related stocks in the US market to rise collectively.

The economic indicators released that day were also positive. The ISM Purchasing Managers' Index (PMI), which reflects US manufacturing sentiment, rose 3.2 points from the previous month to 60.7. This significantly exceeded the market expectation of 56.8 and was the highest level since August 2018. Despite the severe aftermath of COVID-19, the manufacturing sector's recovery appears to remain robust.

By sector, the energy sector recorded the highest increase at 4.5%. Following that, materials, industrials, and consumer discretionary sectors showed relative strength.

The domestic market is only about 10 points away from the 3000 mark. Although the rapid rise in a short period is undeniable, considering abundant liquidity conditions, the global manufacturing recovery, and stable earnings outlooks for domestic companies, this figure is judged to be quite persuasive.