[Good Morning Market] "KOSPI Sets New Records Daily, Attempts to Stabilize in the 3,400 Range This Week"

The KOSPI, which set a new all-time high last week, is expected to attempt to break through and stabilize above the 3,400-point mark this week.

On September 15, Han Ji-young, a researcher at Kiwoom Securities, stated, "This week, the KOSPI will be influenced by factors such as the September Federal Open Market Committee (FOMC) meeting, the August retail sales and industrial production data from the United States and China, central bank meetings in Japan, Europe, and other regions, as well as changes in domestic supply and demand." She forecasted a weekly KOSPI range of 3,340 to 3,450 points.

Last week, the domestic stock market reached record-high territory that had never been achieved before. The key issue is whether the stock market rally will continue, and the September FOMC meeting is expected to serve as a turning point for this assessment.

Researcher Han Ji-young said, "For more than two weeks, the market has already used the prospect of a 'September rate cut' as a driver for stock price increases, so even if there is a 25bp (1bp=0.01 percentage point) cut, there may be limits to securing additional momentum." She added, "The crucial point will be whether the atmosphere of a 'continuous rate-cutting cycle' is maintained."

She explained, "Based on past experience, after breaking out of a box range, the domestic stock market tends to maintain its upward trend." However, she also pointed out, "In the short term, as the desire to realize profits has accumulated, the tug-of-war between 'additional buying demand' and 'profit-taking demand' may intensify around the 3,400-point level during the week." She also recommended considering the possibility of sector rotation, with funds potentially moving from last week's surging sectors such as ▲semiconductors ▲securities ▲banks to previously neglected sectors such as ▲telecommunications ▲automobiles ▲shipbuilding.

As soon as the market opened, the KOSPI, which broke its all-time high, repeatedly set new intraday records. On the 12th, employees at the Hana Bank headquarters in Jung-gu, Seoul, were monitoring the stock market and exchange rates. Photo by Yonhap News Agency

On September 12 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 45,834.22, down 273.78 points (0.59%) from the previous session, while the S&P 500 Index, which focuses on large-cap stocks, ended the day at 6,584.29, down 3.18 points (0.05%). In contrast, the tech-heavy Nasdaq Composite Index rose 98.03 points (0.44%) to close at 21,141.10.

The Nasdaq Index closed at an all-time high. Most technology stocks, with the exception of Amazon, showed strong performance. In particular, shares of Tesla, led by Elon Musk, surged more than 7% to reach their highest level in about seven months, buoyed by optimism over its robotaxi, humanoid robot, and energy businesses.

Micron Technology also hit a record high, rising more than 4% on expectations for the artificial intelligence industry. Most stocks in the Dow Jones Industrial Average fell due to weakening consumer sentiment. Visa, IBM, Salesforce, American Express, Merck, and Amgen all dropped by around 2%.