[Good Morning Stock Market] "KOSPI Attempts to Break Through 2900 Level"

The domestic stock market is expected to attempt to break through the 2900 level this week (8th to 12th). Last week, the KOSPI reached the 2860 level, fueled by Samsung Electronics' surprise earnings, raising expectations for entering the 3000 level.

[Image source=Yonhap News]

On the 5th, the KOSPI closed at 2862.23, up 64.41 points (2.30%) from the previous week, marking the highest level in 2 years and 6 months since January 2022. During the same period, the KOSDAQ rose 7.50 points (0.84%) from 840.44 to close at 847.49.

On the 5th, the New York stock market closed higher, supported by the strong performance of major tech stocks amid a decline in market interest rates. This was due to signs of an economic pause detected through the June employment data. The U.S. Department of Labor reported a June unemployment rate of 4.1%, exceeding the expected 4.0%. This marks the second consecutive month of increase and is the highest level since November 2021.

This week, depending on the level of U.S. inflation indicators, there is a possibility that the KOSPI will break through the 2900 level. Key events expected to influence the Korean stock market include the Bank of Korea Monetary Policy Committee meeting on the 11th, the U.S. June Consumer Price Index (CPI) release, and the U.S. June Producer Price Index (PPI) release on the 12th.

Han Ji-young, a researcher at Kiwoom Securities, stated, "Although there are no significant earnings announcements this week except for LG Energy Solution on the 8th, reflecting last week's quarterly earnings results of Samsung Electronics and LG Electronics, it is judged that the operating profit outlook for the IT sector including semiconductors and the overall KOSPI may further improve." She added, "Therefore, a short-term pause phase may appear during this week, but it is appropriate to set the market direction upwards and respond accordingly."

Foreigners are expected to continue net buying in the domestic stock market for the time being. Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "We maintain a positive view on the foreign net buying trend resumed by Samsung Electronics' earnings surprise last Friday (5th). Foreigners purchased about 1.846 trillion KRW worth of Samsung Electronics shares over the past two trading days." He added, "This pushed the cumulative amount for this year past 10 trillion KRW for the first time, which is expected to raise expectations for a re-rating of the KOSPI."