Korea’s Everything Rally? New Year’s Day KOSPI 2900 has passed

The display board of Hana Bank’s dealing room in Jung-gu, Seoul on the afternoon of the 4th ended at 2944.45, up 70.98 points (2.47%) from the previous trading day. [뉴시스]

The 2900 hurdles were not high. KOSPI, which started trading for the first time in the new year, has easily crossed the 2900 line. Expectations for overflowing liquidity and performance led the index to double, continuing a new record streak of breaking highs.

KOSPI closed the transaction at 2944.45, up 2.47% from the previous trading day on the 4th. After breaking through the 2800 line on the 24th of last month, it stepped on the 2900 notice in 5 trading days. The conquest of the 3000 line is also a countdown. On this day, the market cap of KOSPI (2036 trillion 485.1 billion won) also exceeded 2000 trillion won for the first time in history. It has been 13 years and 3 months since the first market capitalization exceeded 1,000 trillion on October 2, 2007 (1007 trillion 258 billion won).

Among the top stocks by market capitalization, Samsung Electronics (2.47%), SK Hynix (6.33%), LG Chem (7.89%), and Samsung SDI (6.85%) recorded reported prices with a sharp rise. Hyundai Motors (8.07%) and Hyundai Mobis (12.33%) also surged. By industry, non-metallic minerals (6.19%), chemicals (4.56%), electricity and electronics (3.31%), transportation equipment (6.87%), and transportation warehouses (4.28%) rose significantly.

It is the individual who led the advance of KOSPI. Individual investors (net purchases of 1.28 trillion won) received all of the volume (net selling of 1.185 trillion won) that the institution poured out and supported the index. The so-called’Donghak Ant’, which bought 60 trillion won worth of stock last year in the domestic stock market, which was like a ping pong game between foreigners and institutions, became a new game changer.

Samsung Securities’ investment information team leader Jung Myung-ji said, “Donghak ants, who are aggressively investing with their intuition and ferocity, are investing like smart money by buying stocks with top market caps, leading domestic sectors and leading companies.”

Thanks to strong individual investors, the spring strength of the domestic stock market is strengthened, which eases the impact of the downturn, and acts as a lever for a large jump if additional drivers such as foreign buying are introduced.

What should be noted is the movement of foreigners. On this day, foreigners recorded a net purchase of 84.2 billion won. Although the amount is not large, the stocks held by foreigners are seen as a sign of a recovery in corporate performance. On this day, foreigners bought a service industry (108.9 billion won) including chemicals (286.8 billion won), transportation equipment (152.1 billion won), and the Internet.

Lee Kyung-min, head of the investment strategy team at Daishin Securities, said, “Foreigners are buying in the order of business with improved performance and better business conditions.” Explained.

In front of the KOSPI 3000 eyes. Graphic = Reporter Kim Kyung-jin [email protected]

There is evidence for earnings expectations. Exports last month ($51.01 billion) reached a record high in December exports. Team leader Jung Myung-ji emphasized, “It has been confirmed that the profits of representative industries such as semiconductors, automobiles, and chemicals have been high enough to reach a record high, and export data has clearly returned to recovery.”

Even in the face of the US-China conflict, which is rising again, Korean companies can benefit from reflection. Park So-yeon, head of investment strategy at Korea Investment & Securities, pointed out that “the role of Korean companies in the EV-related supply chain will be more prominent in the situation where the US is reluctant to do so.”

The liquidity already overflowing the market is not expected to dry out easily. If the US Federal Reserve (Fed) plans to maintain zero interest rates until 2023, and the real interest rate in the United States remains at negative, if the dollar continues to weaken, money will inevitably flow into the domestic stock market and other assets. This is the reason why the’Everything Rally’ (FT) is taking place, where the value of various assets, including real estate, minerals and bitcoin, is shaken.

It is only a matter of time before the conquest of Hill 3000 is a matter of time. The key is to what extent and how long this trend can be continued. Jeong Yong-taek, head of IBK Investment & Securities Research Division, said, “The current stock market flow is too much to see with fundamentals alone.” This is because the gap between the stock market and the real economy is significant. Jung said, “The stock price will be adjusted in March-April when the company’s last year’s financial statements are completed and report cards are accepted.”

Manager Park So-yeon also said, “As the gap with the real economy is significant, we need to approach investment while thinking about what trigger points will shake the market.” “In short, the outcome of the Georgia Senate election on the 5th It will be able to influence the mood.”

On this day, the KOSDAQ ended at 977.62, up 9.20 (0.95%). Among the top stocks by market capitalization, Ecopro BM (10.05%) rose sharply, while Celltrion Healthcare (-7.18%), Celltrion Pharmaceutical (-8.51%), and Seegene (-4.77%) plunged. The combined transaction value of the KOSPI and KOSDAQ markets reached an all-time high of 41,3657 billion won, surpassing the 28th of last month (41,993 billion won).

On this day, the value of the won against the dollar in the Seoul foreign exchange market ended at 1082.1 won per dollar, up 4.2 won from the previous trading day.

Reporters Ha Hyun-ok and Yoon Sang-eon [email protected]