[Good Morning Stock Market] "KOSPI Attempts to Stabilize at 2500 Level"

[Image source=Yonhap News]

The KOSPI is expected to start slightly higher on the 27th.

On the 24th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,390.15, up 117.12 points (0.33%) from the previous session. The Standard & Poor's (S&P) 500 index rose 2.72 points (0.06%) to 4,559.34, while the Nasdaq index closed at 14,250.85, down 15.00 points (0.11%) from the previous session. The market ended mixed during the shortened trading session following the Thanksgiving holiday.

The S&P 500 and Nasdaq indices rose for the fourth consecutive week, marking the longest streak since June. The Dow also rose for four consecutive weeks, the longest since April.

Market analysts emphasize the importance of the U.S. Black Friday sales results. Data analytics firm Adobe Analytics forecasts that online sales will increase by 4.8% year-over-year through the end of the year, which is below the pre-COVID-19 average.

Han Ji-young, a researcher at Kiwoom Securities, said, "Even if total consumption increases, a slowdown in consumption growth seems inevitable," adding, "U.S. consumption is not only a variable that determines the direction of the U.S. economy but is also directly linked to South Korea's exports and KOSPI earnings forecasts." She further noted, "If the year-end consumption season is weak, downward pressure could increase not only on the U.S. stock market but also on the domestic market."

With Eurex KOSPI 200 futures up 0.18%, the KOSPI is expected to start slightly higher. However, the upward momentum is expected to weaken. The KOSPI has shown a sustained upward trend, closing higher for the past four weeks. Lee Kyung-min, a researcher at Daishin Securities, explained, "The KOSPI is fluctuating around the 2,500 level," adding, "It is a challenging situation to firmly establish above 2,500 and move toward 2,600, so short-term fluctuations in the KOSPI and global markets are inevitable."

As momentum is expected to emerge in the domestic market, there is advice to focus on the semiconductor sector. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The sector that has supported the domestic market this year is undoubtedly 'semiconductors,'" explaining, "Bloomberg estimates that earnings will improve centered on the semiconductor sector next year, with earnings per share (EPS) expected to increase by 58% over the next 12 months, indicating mid- to long-term benefits for domestic companies."