On the 13th, BNK Investment & Securities analyzed that the strong rise of the KOSPI at the beginning of the year is reasonably seen as an autonomous rebound due to excessive decline, and that a trend-based rise will require time.

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As the recent rise in U.S. Treasury yields continues, leading to a correction phase in global stock markets, the KOSPI has recorded a strong upward trend since the beginning of the year. Kim Seong-no, a researcher at BNK Investment & Securities, stated, "The KOSPI has been rebounding after the 12-month forward price-to-earnings ratio (PER) fell below -2 sigma since 2011, but it is difficult to consider this a trend-based rise now," adding, "Concerns about an economic recession are growing as the coincident index cyclical component has plunged to the lowest level since the financial crisis, and profit concerns persist, led by Samsung Electronics." He further explained, "It seems reasonable to view this as an autonomous rebound due to excessive decline. A trend-based rise is expected to take time."

Researcher Kim then touched on valuations by major sectors. He said, "Sectors within the KOSPI 200 whose 12-month forward earnings per share (EPS) are maintaining an upward trend include finance, cyclical domestic demand, stable domestic demand, healthcare, and heavy industries," adding, "Among these, the historically most undervalued sector is cyclical domestic demand centered on the automobile industry. Considering that the automobile industry surged last year in the first half due to value-up expectations, attention should be paid to the period after earnings announcements."

Regarding the steel and chemical sectors, he analyzed, "Due to the recent rise in international oil prices, energy stock price trends may be relatively better than those of chemicals. The steel sector's 12-month forward price-to-book ratio (PBR) has fallen to 0.29 times, which corresponds to the lowest level during the recent pandemic and can be regarded as an autonomous rebound."