[Good Morning Stock Market] US Stocks Mixed... 'Corporate Value-Up Program' Expected to Support KOSPI's Slightly Positive Start

[Image source=Yonhap News]

Last week, the U.S. stock market closed mixed after reaching record highs and then seeing some profit-taking, while the domestic stock market is expected to start slightly higher ahead of the government's announcement of a corporate value-up program.

On the 23rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 62.42 points (0.16%) from the previous trading day to close at 39,131.53. The S&P 500, which is centered on large-cap stocks, increased by 1.77 points (0.03%) to 5,088.8, while the tech-heavy Nasdaq index fell 44.8 points (0.28%) to close at 15,996.82.

Last week in the U.S. stock market, the Dow set its 14th record high of the year, and AI leader Nvidia's market capitalization exceeded $2 trillion intraday, but the market closed slightly higher amid profit-taking and expectations that interest rate cuts will not be easy in the near term.

Seokhwan Kim, a researcher at Mirae Asset Securities, said, "Recent comments from U.S. Federal Reserve (Fed) officials on interest rates emphasize that while rate cuts are certain this year, 'patience' is needed to confirm more definitive evidence that inflation is moving toward the 2% target."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.1%, while the Emerging Markets Index ETF fell 0.1%. Eurex KOSPI 200 futures increased by 0.3%. Considering this, the KOSPI is expected to start in a slightly higher range.

The domestic stock market is awaiting the detailed announcement of the corporate value-up program. Researcher Kim said, "Depending on the contents of the corporate value-up program, attention should be paid to whether profit-taking emerges in sectors that have seen gains so far."

Daejun Kim, a researcher at Korea Investment & Securities, said, "Market volatility will be determined by the contents of the corporate value-up program. If tax benefits are provided to companies and investors for various measures to enhance shareholder value, such as share buybacks and cancellations and dividend increases, then a selection process for undervalued companies will begin."

Meanwhile, the one-month non-deliverable forward (NDF) won-dollar exchange rate stood at 1,328 won, and reflecting this, the won-dollar exchange rate is expected to start 4 won lower.