[Market ING] KOSPI Continues Upward Trend Since Start of Year, Attempts to Solidify Above 4,600 Mark

Weekly KOSPI Expected Range: 4,250?4,700

The KOSPI has continued its upward trend since the beginning of the year. Although the pace of gains has somewhat slowed, the overall upward momentum remains intact. This week, the market is expected to focus on the release of U.S. inflation data and attempt to firmly establish itself above the 4,600 mark.

Yonhap News Agency

Last week, the KOSPI rose by 6.42%, while the KOSDAQ gained 0.25%. Kim Jongmin, a researcher at Samsung Securities, stated, "The KOSPI has shown an unstoppable rally since the start of 2026. The index, which began the year at 4,214 points, climbed every trading day and quickly surged to 4,586 points." He added, "The momentum from the world's largest electronics and IT exhibition, CES 2026, and Samsung Electronics' earnings surprise propelled the semiconductor sector to lead the index's upgrade. Additionally, last year's leading sectors, shipbuilding and defense, joined the rally, further heating up the market."

Lee Kyungmin, a researcher at Daishin Securities, commented, "As the growth and marketability of the artificial intelligence (AI) industry became more visible through CES, expectations for a semiconductor supercycle have increased." He continued, "The KOSPI's forward earnings per share (EPS) is clearly on an upward trend, especially centered on the semiconductor sector, and the rally has been driven by performance fundamentals rather than liquidity."

However, there is a possibility that a short-term correction may occur due to the sharp rise at the beginning of the year. Lee explained, "After the rapid rise at the start of the year, a short-term correction may appear as the market digests the supply of shares. In addition, the pressure to realize profits has increased ahead of the release of key economic indicators." He added, "Rather than chasing the current stock prices, it would be more appropriate to expand positions by utilizing volatility while monitoring macroeconomic events."

Na Jeonghwan, a researcher at NH Investment & Securities, stated, "Although the KOSPI surged to the 4,600 range during intraday trading since the beginning of the year, the stock market environment remains mixed." He cautioned, "If event risks such as a U.S. Supreme Court ruling materialize, there is a need to be wary of short-term profit-taking." He continued, "However, aside from that, the main factors this week are generally favorable for the stock market. On the 12th, the JP Morgan Healthcare Conference will begin, which could increase interest in the bio sector. In addition, the U.S. Consumer Price Index (CPI) for December, scheduled to be announced on the 13th, is expected to remain at 2.7%, the same as the previous month, so concerns about a reacceleration of inflation should be limited." NH Investment & Securities presented a projected KOSPI band of 4,250 to 4,700 for this week.

This week's major events include the release of South Korea's export data for January 1-10 on the 12th, the U.S. December CPI on the 13th, the U.S. November Producer Price Index (PPI) and November retail sales, as well as China's December export data on the 14th. On the 15th, the Bank of Korea's Monetary Policy Board meeting will be held, and on the 16th, the U.S. December industrial production figures will be announced. The JP Morgan Healthcare Conference will take place from the 12th to the 15th.