[Good Morning Stock Market] Quiet US Stock Market... KOSPI Expected to Show Limited Movement

US Stock Market Ends Higher Amid Cautious Sentiment... "Inflow of Bargain Buying"
"Mixed Upward and Downward Factors in Korean Stock Market... Limited Price Movement"

On the 28th, the Korean stock market is expected to show limited movement. As the year-end closing approaches, a pause in trading due to sluggish activity is anticipated.

[Image source=Yonhap News]

On the previous day (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average rose 0.30% (111.19 points) to close at 37,656.52. The large-cap-focused Standard & Poor's (S&P) 500 index increased by 0.14% (6.83 points) to 4,781.58, while the tech-heavy Nasdaq index climbed 0.16% (24.60 points) to finish at 15,099.18.

By sector, healthcare, real estate, and consumer staples rose. In contrast, energy, telecommunications, and utilities declined. Among individual stocks, Amazon and Alphabet fell. Meanwhile, Tesla rose nearly 2% after foreign media reported that it is preparing to upgrade the Model Y at its Shanghai factory.

The U.S. stock market showed a quiet performance amid year-end closing caution and a lack of events. However, it closed higher as expectations for a Federal Reserve (Fed) interest rate cut persisted. Kwangnam Park, a researcher at Mirae Asset Securities, said, "Although the U.S. market reversed to a decline during the session, bargain buying flowed in, ultimately maintaining the upward trend."

On this day, the domestic stock market is expected to show limited movement. The MSCI Korea Index Exchange-Traded Fund (ETF) and emerging market ETFs rose by 0.9% and 0.58%, respectively. However, as it is the last trading day, the market is expected to be quiet. Yujun Choi, a researcher at Shinhan Investment Corp., explained, "The last trading day of the year will show a quiet appearance. Since macro events have limited influence and optimism continues, but some price burdens exist, new buying will be limited."

Jiyoung Han, a researcher at Kiwoom Securities, said, "Today, amid sluggish trading due to the year-end closing, supply and demand factors such as whether individual investors will continue buying after the major shareholder capital gains tax event ends and whether short-term profit-taking will emerge will create mixed upward and downward factors," adding, "A limited stock price movement is expected."

By sector, differentiated movements are expected. He said, "From a sector perspective, uncertainty surrounding the domestic construction industry such as workouts, and a decline in oil prices due to the possible return of container ships in the Red Sea are expected to create a differentiated market within cyclical sectors." He continued, "Considering the recent improvement in stock prices and supply-demand momentum in the IT sector and the possibility of early inflow of expectations for 'CES 2024,' the world's largest home appliance and IT exhibition scheduled for early next year, market interest in stocks within this sector is expected to continue."