[Good Morning Market] KOSPI Expected to See Supply-Demand Tug-of-War Around 5000 Mark

Leading Sectors vs. Lagging Sectors... Limited Upward Momentum
Caution Advised on Profit-Taking Ahead of Earnings Season

The KOSPI, which surpassed the 5000 mark during intraday trading the previous day, is expected to experience limited upward momentum on January 23 amid ongoing supply and demand battles.

On the previous day, the KOSPI broke through the 5000 level early in the session, helped by eased geopolitical concerns after U.S. President Donald Trump announced he would withdraw his so-called "Greenland tariffs" plan against Europe. However, as the day progressed, the 5000 mark acted as a psychological resistance, leading to profit-taking. As a result, the index gave up part of its gains and closed at 4952.53.

On the 22nd, when the KOSPI surpassed the dream index of 5000, employees at the Hana Bank dealing room in Jung-gu, Seoul, are seen clapping joyfully. 2026.1.22 Photo by Jo Yongjun

Lee Sunghoon, a researcher at Kiwoom Securities, said, "Today, the domestic stock market is expected to see a tug-of-war in supply and demand between existing leading sectors (such as semiconductors, automobiles, and shipbuilding) and lagging sectors (such as secondary batteries, consumer goods, and bio), which will likely limit the index's upward momentum."

He added, "With the full-fledged corporate earnings season approaching, we expect to see capital rotation focused on earnings-driven stocks. Therefore, investors should be cautious about profit-taking in some stocks that have previously risen based on narratives."

Attention should also be paid to market changes following the Bank of Japan's (BOJ) monetary policy meeting during the session. After Japanese Prime Minister Sanae Takaichi recently announced an early general election for February 8, concerns over increased fiscal spending have led to heightened volatility in the Japanese government bond market.

Regarding this, Lee explained, "While it is highly likely that the Bank of Japan will keep rates unchanged today, it is important to watch Governor Ueda's comments on monetary policy operations and whether they will lead to increased market volatility."

The three major New York stock indexes continued their rally for a second consecutive day, following President Trump's announcement of the withdrawal of the Greenland tariffs plan. On January 22 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 49,384.01, up 306.78 points (0.63%) from the previous session. The S&P 500 index rose 37.73 points (0.55%) to 6,913.35, and the tech-heavy Nasdaq index climbed 211.20 points (0.91%) to 23,436.02.

Among major stocks, Microsoft rose 1.58%, Apple gained 0.28%, Nvidia was up 0.91%, and Tesla climbed 4.15%. Meta jumped 5.66%, as buying interest concentrated on Meta, which had previously underperformed compared to other big tech (large information technology companies).

The dollar declined. The euro-dollar exchange rate rose 0.5% to $1.1748, and the pound-dollar rate also rose 0.5% to $1.3502. The dollar-yen rate remained at 158.44 yen.

Lee stated, "With geopolitical issues easing, the market is expected to refocus next week on corporate earnings announcements led by big tech and on Federal Reserve monetary policy. Given the relatively low stock price burden ahead of earnings releases, it is important to keep in mind that big tech could gain renewed upward momentum around the time of earnings announcements."