Domestic Market Stretching... Thriving Small and Mid-Cap Stocks

[Asia Economy Reporter Park Jihwan] Eugene Investment & Securities evaluated on the 6th that in the domestic stock market, small and mid-cap stocks are expected to perform relatively well in a phase where domestic demand improves.

Researcher Kang Daeseok of Eugene Investment & Securities said, "Recently, there has been some talk that the market is 'boring' due to reduced index volatility," adding, "However, this does not apply to small and mid-cap stocks. Small and mid-cap stocks are still alive and doing well."

Researcher Kang forecasted, "With the base effect resolving, export growth is expected to slow down after May," and "domestic consumption is expected to gradually recover, and small and mid-cap stocks are relatively favorable in the domestic stock market."

He analyzed that the leading stock phase is shifting from growth stocks to value stocks and cyclical stocks, particularly within cyclical stocks, from so-called heavy and chemical industries to sectors such as consumption, travel, and aviation.

He stated, "The sectors related to economic reopening and consumption, where the trend is still alive, have a higher proportion of small and mid-cap stocks compared to other sectors."