Korea Investment & Securities Report
Korea Investment & Securities on the 2nd suggested a KOSPI band of 2350 to 2550 points for January and advised responding with Trump beneficiary stocks.
Kim Dae-jun, a researcher at Korea Investment & Securities, stated in a report released that day, "The Trump 2.0 era begins on January 20. The financial market will price in policy changes even before Trump's inauguration," adding, "However, until the new U.S. administration concretizes its policies, price indicators will fluctuate based on forecasts, and in the U.S., the dollar, interest rates, and stock prices could all show strong trends."
He viewed that Korea might move differently. He diagnosed, "The problem lies with Korea. A strong dollar will raise export prices, but U.S. trade regulations and rising manufacturing costs could weaken export momentum," and "Internally, ongoing policy uncertainty and deteriorating corporate earnings outlooks could also act as negative factors for the stock market."
He advised building an investment portfolio as defensively as possible. He said, "In a situation where domestic and international policy uncertainties have increased, it is necessary to avoid negative factors and focus on positive ones. In this process, attention is required on Trump policy beneficiary stocks," highlighting, "The shipbuilding industry is a representative example."
The shipbuilding industry is a sector that Trump has directly mentioned for cooperation, and with favorable ship orders, it can overcome unfavorable investment environments. Besides this, defense, nuclear power, and bio sectors were also cited as Trump beneficiary stocks.
Meanwhile, he suggested paying attention to value-up sectors as well. He said, "Defensive strength due to low beta could be emphasized. Among sectors, holding companies, telecommunications, and food and beverage fall into this category," adding, "Financials should be watched at a neutral level until exchange rates stabilize."
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