The domestic stock market, which has been running uninterruptedly since November of last year, has entered a breathtaking. Last week, the KOSPI index climbed to the 3,200 mark on the back of the buying trend of individual investors, but it gave 3,100 to the sale bomb of foreigners and institutions.
This week’s domestic stock market is expected to fluctuate on news of stimulus plans to be announced in line with the launch of the US Joe Biden administration. Experts believe that if the supply and demand for foreigners improves due to anticipation of economic improvement, the same rise as the beginning of the year could continue.
Last week, the KOSPI index closed at 3085.90, down 66.28 points (2.10%) from the previous week. /Photo = Reporter Shin Kyung-hoon [email protected]
According to the Korea Exchange on the 17th, last week, KOSPI ended trading at 3085.90, down 66.28 points (2.10%) from the previous week. The KOSDAQ index fell 23.35 points (2.36%) to 964.44 over the same period.
Individuals net bought 10,441.5 billion won in the domestic stock market (KOSPI + KOSDAQ) last week. However, foreigners and institutions net sold 1,379.5 billion won and 9,162.4 billion won, respectively, and the stock price declined.
The US stock market was sluggish as the US Treasury bond rate rose despite expectations of stimulus measures. The Dow index fell 0.9% last week. The Standard & Poor’s (S&P) 500 and the technology stock-centered NASDAQ index fell 1.5% each.
This week (18-22), the KOSPI index is expected to fluctuate around the 3150 line. The US Biden administration will be launched on the 20th (local time). The market is focusing on the $1.9 trillion stimulus package proposed by Biden-elect and the additional stimulus plan to be announced in February.
If additional stimulus measures exceed market expectations, global stock markets, including domestic stocks, could rise further and show a bullish trend. Although some estimates that stimulus expectations have already been largely reflected in the stock market, the expectation of additional cash payments to individuals can act as a catalyst to boost the stock market.
“Market attention is focused on the scale of stimulus measures that the Biden administration will introduce after its inauguration,” said Noh-gil, a researcher at NH Investment & Securities.
According to the specific size and content of the stimulus package, and the executive order to be signed by the Biden administration for the first time, there is also an analysis that the differentiation of each industry may become apparent. Rejoining the Paris Climate Change Convention, restoring relations with allies, responding to Corona 19, and withdrawing the anti-immigration policy are mentioned as the first influential administrative orders.
Dae-hoon Han, a researcher at SK Securities, said, “You should be interested in the policies that the Biden administration will make for the first time after taking office.” I can do it.”
Photo = Yonhap News
However, the rise in US Treasury yields on anticipation of an economic improvement may be a burden to the stock market. If the US Treasury bond rate rises, the market interest rate, such as the loan rate, rises, and in the long term, the interest burden on corporate borrowing and debt increases. Eventually, the investment value of the company declines, which adversely affects the stock market.
The 10-year U.S. Treasury bond interest rate has not changed significantly since it fell below 1.0% per year in March last year due to the aftermath of Corona 19. However, since the end of last year, when the corona 19 vaccination began, it has been showing a steep rise. Interest rates rose to 1.04% per year on the 6th, then rose to 1.19% per year on the 12th, and ended at 1.08% per year on the 15th.
Yoon Jin-woo, reporter at Hankyung.com [email protected]