KOSPI Recovers 2,900 Points After 3 Years and 5 Months
Anticipation for Stock Market Revitalization Policies Draws Capital Inflows
Semiconductor Sector Expected to Lead the Uptrend
The KOSPI has recovered the 2,900-point level for the first time in three years and five months since January 2022. The domestic asset management industry remains optimistic, anticipating that President Lee Jaemyung will introduce stock market revitalization policies after taking office.
According to the financial investment industry on June 11, the KOSPI has risen 7.76% so far this month. On this day, the KOSPI closed at 2,907.04, up 1.23% from the previous day. Foreign investors led the index's rise by recording a net purchase of 3.95 trillion won in the KOSPI market from June 2 to June 11.
Ha Young Lee, Head of Research at KB Asset Management, analyzed, "Recently, the domestic stock market has shown a stable trend despite volatility," adding, "The KOSPI surpassing the 2,900-point level can be seen as a result of both expectations for domestic and international policy measures and increased confidence in corporate earnings improvement."
Sangjin Jung, Head of Equity Management at Korea Investment Trust Management, also explained, "The domestic stock market is in a situation where not only well-known internal factors such as domestic demand stimulus and various stock market system improvements exist, but also various potential external positives may emerge." He continued, "We are at the beginning of a major upward trend," and added, "The room for further gains will remain fluid depending on changes in the external environment."
There is a view that the KOSPI has ample room for further gains. Jungsoo Kim, Head of Research Division 1 at Mirae Asset Global Investments, said, "We maintain a positive outlook for the KOSPI this year," and predicted, "Government-led monetary and fiscal stimulus will simultaneously be pursued, which will reflect expectations for economic growth." He further emphasized, "The electronics sector, including Samsung Electronics, which had underperformed, and which accounts for 32% of the KOSPI market capitalization, will lead the gains." He added, "We expect to see improved earnings driven by a rebound in semiconductor prices and investments in artificial intelligence (AI), as well as an increase in foreign purchases due to the strengthening of the Korean won."
Yu Bi, Head of Domestic Equity Management at Hanwha Asset Management, explained, "If tariff negotiations are concluded, we expect a short-term rally led by large-cap export stocks such as semiconductors and automobiles," and added, "If long-term investment incentives in the domestic stock market, such as separate taxation of dividend income, are specified in detail, domestic capital currently concentrated in real estate will shift to the stock market."
Hyungrae Kim, Head of Global Macro Strategy at Samsung Asset Management, observed, "Stock market revitalization policies are expected to continue," and predicted, "Once external uncertainties are resolved, industries with solid earnings fundamentals will stand out."
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