On the afternoon of the 14th, the Korea Exchange and the Financial Investment Association held a meeting with the CEO of the capital market to commemorate the breakthrough of the KOSPI 3000 in the conference room of the Seoul office building, attended by capital market related organizations and industry representatives.While holding a’toast’ to the KOSPI, which opened the 3000 era at the Yeouido Securities Market, it was agreed that we should look at it as a bull market to resolve the undervalued rather than worry about the bubble. At the same time, amid an unprecedented bull market, it was predicted that the timing of the US Federal Reserve’s (Fed) tapering (quantitative easing) this year and how virtuous circulation of liquidity in the stock market will turn into the real economy will be key to the index’s direction.
Kim Hak-gyun, head of the research center of Shinyoung Securities, held a discussion on the theme of’The KOSPI 3000 Era, the Beginning of a New History’ held at the Seoul office building of the Korea Exchange on the 14th. Investors intensively bought 11 trillion won this year, and this is the first inflow intensity seen as an analyst for 24 years.”
According to Center Director Kim, the only decline in the KOSPI for the third consecutive year was from 1995 to 1997 during the financial crisis, and there was no decline for the second consecutive year in the 2000s. This means that if you invest over time, there is a high probability that the stock price will rise even if there are twists and turns.
He pointed out that the increase in dividend rates of companies is the most important for the share price to jump higher, as the’Korea Discount’, which has held back the domestic stock market, has been largely stabilized with this opportunity. The KOSPI dividend yield is 1.0%, which is lower than that of major countries such as the UK (3.1%), Taiwan (2.7%) and Germany (2.6%).
“Dividends are the power to hold and withstand stocks even when unexpected adjustments come,” said Center Director Kim. “It is necessary for Korean companies to maintain their dividend payout ratio at around 30%.”
In addition, they cited the possibility of the US Fed’s tightening policy and the sanctions policy of the authorities due to the decline in liquidity in the real economy as a risk factor for the stock market this year, as the liquidity of asset prices created by the low interest rate trend was reduced.
Representatives of securities companies refuted the overheating of the KOSPI valuation (share price level compared to earnings) that has recently risen in and out of the market.
SK Securities CEO Kim Shin said, “I think that’there is now coming,’ in that a company, one of the domestic economic players, is now properly evaluated in terms of scale and profits,” he said. “It is only that the index has doubled in one year. “It’s difficult to see it as a bubble,” he said.
“Even though the price of real assets in Korea is not low compared to the global market, only stocks continued to be undervalued.” “Because the money move toward the capital market can be of great significance to the growth of the Korean economy, it is an innovative and adventurous business. “The capital market paradigm shift that is suitable for this is being done.
Park Tae-jin, general manager of JPMorgan, also said, “The geopolitical factors and weakness in corporate governance were the reasons for the discount on the Korean stock market, but the current situation is a market where it will be emphasized to receive a premium over the discount.” They sold 20 trillion won in net sales, but this year the situation is different, which could lead to a net inflow of funds.”
Lastly, Byeong-du Son, chairman of the Korea Exchange, said, “It is necessary to listen to the voice that the recent stock market rise is disparate from the real economic recovery trend, and that the market must be wary of overheating,” and “while managing liquidity risk for sustainable growth, innovation We will reorganize the market evaluation and growth, and provide customized support measures so that companies can easily get listed, so that innovative companies can grow together in the early stages.”
[김규리 매경닷컴 기자 [email protected]]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]