Photo = Getty Image Bank
The KOSPI index reached an all-time high, surpassing 2800 thanks to the Santa Rally.
According to the Korea Exchange on the 27th, last week (21-24), the KOSPI index closed at 2806.86, up 34.68 points (1.25%) from the previous week. During the same period, the KOSDAQ index fell 1.95%.
Kospi was briefly held back by news that a variant of the novel coronavirus infection (Corona 19) was discovered in the UK. However, thanks to the strength of IT companies such as Samsung Electronics and LG Electronics, the KOSPI surpassed 2800. This is a result of the expectation of expansion of dividends and shareholder-friendly policies, as the value of IT and secondary battery companies has been reevaluated following the expansion of the eco-friendly car market.
Last week, the New York Stock Exchange closed at 30,199.87 on the New York Stock Exchange (NYSE), with the Dow Jones 30 Industrial Average, up 0.06% from the previous week. During the same period, the Nasdaq index also increased by 0.38%, but the Standard & Poor’s (S&P) 500 index decreased slightly by 0.17%.
As market uncertainties eased with the conclusion of the Brexit negotiations, risk appetite for the second half of the market strengthened. The United Kingdom and the European Union (EU) concluded negotiations on future relations, including trade agreements. This includes future economic security and trade relations.
However, the fact that the Corona 19 situation is getting worse is a factor of concern. The number of hospitalized COVID-19 patients in the U.S. reached a record high of 12,151 on the 25th (local time). Here, the first side effects of Modena’s COVID-19 vaccine were also reported. Dr. Josein Sargerday, an oncologist at the Boston Medical Center, experienced allergic symptoms such as dizziness after getting modder or vaccines.
On the 19th (local time), the International Monetary Fund (IMF) feared that the global economic recovery was in crisis due to the re-proliferation of the novel coronavirus infection (Corona 19). Photo = Getty Image Bank
Corona 19 vaccine anticipation’extinction’… “Attention to large-cap stocks in the KOSPI 200”
Experts predict that for the time being, the KOSPI will continue to breathe. Expectations for the Corona 19 vaccine have already been reflected in the market, and investment sentiment is shrinking due to the recent spread of the virus variant.
The corona 19 strain, which first occurred in southeastern England, at the end of September, was found to have up to 70% stronger transmission power than the existing virus. Recently, as cases of corona 19 strain infection have occurred in Japan and Germany, there is concern about further spread.
Ahn So-eun, a researcher at IBK Investment & Securities, said, “The vaccine-related expectations that led the stock market rise were offset by the spread of the variant Corona 19.” It is uncertain whether the virus can be defended.” He added, “The anticipation of the US stimulus package that supported investment sentiment also weakened as Trump put a brake on it.”
The stimulus package passed the US Congress, but President Donald Trump has yet to sign it. Trump said he would have to increase the $600 cash payment per person to $2,000, and would not sign the stimulus plan unless it was included.
Here, foreigners and institutions are starting to book closing (book closing). Foreigners net sold 1.764 trillion won in the securities market this month.
Korea Investment & Securities Research Institute Ina Yee said, “Since November, foreigners have been intensively buying large-value stocks, which has led to the increase in the KOSPI, and the foreign buying trend has been slowing. As a factor, it is difficult to expect a foreign purchase inflow.”
Therefore, it is advised that it is more advantageous to increase the weight of IT holdings rather than large stocks.
Noh-gil, a researcher at NH Investment & Securities, said, “The point when the relative return on large cap stocks can increase again is early next year when foreign spot net purchases can be expected.” The strategy to increase the value will also be effective,” he predicted.
As the industry of interest, we presented stocks related to semiconductors and rechargeable batteries.
Eunbit Go, reporter Hankyung.com [email protected]