KOSPI 3300 and the Opening of Q2 Earnings Season

The KOSPI surpassed the 3,300 mark for the first time in history. On the 25th, the KOSPI index opened at 3,289.18, up 3.08 points (0.09%), and extended its gains to break the intraday record of 3,292.27 set the previous day. The photo shows the Hana Bank dealing room in Jung-gu, Seoul, on that day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Junho Hwang] As the KOSPI and KOSDAQ hit new highs, the Q2 earnings season for listed companies will begin next week.

Samsung Securities diagnosed on the 26th that it is a time to focus on the earnings market. With signals of liquidity tightening being presented in South Korea and the United States, and the KOSPI surpassing the 3300 mark, interest in companies achieving real growth is expected to increase.

This rally was driven by the rise of other sectors despite the semiconductor and bio sectors, which are among the top market capitalization industries, not showing strength. On the KOSPI, growth in platform and cyclical stocks was prominent. On the KOSDAQ, sectors such as media and entertainment, battery, and OLED materials stood out.

In a liquidity-driven market, most stocks rise, but in an earnings-driven market, only stocks with strong expectations for earnings growth move significantly. Accordingly, Samsung Securities suggested maintaining a portfolio focused on growth industries such as automobiles and batteries, and beneficiaries of normalized consumer activities. The recommended stocks include Kia, Hyundai Wia, and LG Electronics in the automobile and electronic components sectors. Investment ideas were also presented for battery and materials sectors such as Samsung SDI, SK Innovation, and SKC. Promising cyclical stocks include CJ ENM and KCC.

Jongmin Kim, a researcher at Samsung Securities Research Center, stated, "Next week, to expand the proportion of cyclical stocks, we will newly include KCC, which is expected to benefit from the recovery of front-end industries such as automobiles, shipbuilding, and construction, as a recommended stock."