[Good Morning Stock Market] "Tesla Surged... KOSPI Expected to Start Higher"

The domestic stock market is expected to start higher on the 30th. Given Tesla's sharp rise on the New York Stock Exchange, related domestic secondary battery stocks are also expected to show strength.

[Image source=Reuters Yonhap News]

On the 29th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 38,386.09, up 146.43 points (0.38%) from the previous trading day. The S&P 500 index, focused on large-cap stocks, rose 16.21 points (0.32%) to 5,116.17, and the tech-heavy Nasdaq closed at 15,983.08, up 55.18 points (0.35%).

The New York stock market was buoyed by strong corporate earnings, with Tesla and Apple leading the index gains. Tesla surged 15.31% on news that it passed data safety inspections in China, bringing it one step closer to the local launch of its Full Self-Driving (FSD) software. Apple rose 2.48% after investment firm Bernstein upgraded its rating from 'Market Perform' to 'Outperform.'

Han Ji-young, a researcher at Kiwoom Securities, said, "Despite cautious sentiment ahead of the May Federal Open Market Committee (FOMC) meeting, the U.S. stock market showed strength due to easing geopolitical risks, a recovery in risk asset preference driven by Tesla's sharp stock rise, and positive earnings expectations for companies like Amazon and Apple."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 1.1%, and the MSCI Emerging Markets Index ETF increased by 1.0%. Eurex KOSPI 200 futures rose 0.2%. Considering this, the KOSPI is expected to start 0.2% to 0.5% higher.

Kim Seok-hwan, a researcher at Mirae Asset Securities, noted, "Attention should be paid to the recent 'hand changes' by foreigners in the domestic stock market. On the 29th, foreigners sold semiconductor stocks worth 250 billion KRW net, but chemical and IT home appliance sectors, which include secondary battery companies, recorded a combined net purchase of 210 billion KRW." He added, "SK Innovation has announced its goal to achieve the break-even point (BEP) in its battery division in the second half of the year. Meanwhile, Samsung Electronics has fallen about 9% from its recent peak, so it is necessary to check the confirmed earnings announcement and future business outlook at the investor relations (IR) meeting scheduled for the morning of the 30th."

Han said, "Due to the Tesla-driven U.S. stock market strength from autonomous driving-related positive news, the market is expected to start higher, centered on electric vehicle and autonomous driving-related stocks," but also predicted, "Due to uncertainties during the domestic market holiday on May 1 and cautious sentiment ahead of the May FOMC, the market is expected to show a firm but subdued trend."