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| On the afternoon of the 22nd, an employee is working in a smart dealing room at KB Kookmin Bank’s Yeouido branch in Yeongdeungpo-gu, Seoul. On this day, the KOSPI index fell 20.21 points (0.64%) to 3,140.63 compared to the previous trading day, and the KOSDAQ fell 1.42 points (0.14%) to 979.98. 2021.1.22/News1 © News1 Reporter Shin Woong-soo |
This week (25~29), the domestic stock market is entering the’earning season’, in which the 4th quarter of last year is announced. This week, in particular, major listed companies such as Samsung Electronics, SK Hynix, and LG Chem are gathering earnings announcements.
According to the Korea Exchange on the 25th, on the 22nd, the KOSPI index closed at 3140.63, up 1.77% from the previous week (3085.90).
In the beginning of last week, the domestic stock market started lowering due to large-scale profit-taking sales by institutions. While the valuation burden (at the level of the stock price) was accumulated, the US consumption index was sluggish, which at one time weakened investment sentiment. In addition, following the legal arrest of Samsung Electronics Vice Chairman Lee Jae-yong, Samsung Group stocks fell together, which fueled the index decline, but this was limited.
The KOSPI index succeeded in rebounding in the buying trend of individuals and foreigners, and the biden administration’s anticipation for economic stimulus in the US also had a positive effect. In addition, the fact that the stock prices of high-ranking stocks were strong due to the possibility of cooperation between Kia Motors and Apple and LG Electronics’ withdrawal of smartphones from the deficit business was positive.
This week, major listed companies are expected to announce their earnings in the fourth quarter of last year. Along with this, the US Federal Open Market Committee (FOMC) scheduled for 26-27 (local time) is a major event to watch out for.
Hyundai Motor Company and Samsung Biologics on the 26th, LG Chem, Samsung C&T, Kia Motors, Samsung Electro-Mechanics on the 27th, Samsung Electronics on the 28th, Samsung SDI, Naver, and Hyundai Mobis on the 28th, and SK Hynix and SK Innovation on the 29th, and LG Electronics in the fourth quarter of last year. Announce the results. In addition, big overseas companies such as Tesla, Apple, Facebook, and Starbucks are scheduled to announce their fourth quarter results.
Ahn So-eun, a researcher at IBK Investment & Securities, said, “The variable that influences the stock price will shift from interest rates to earnings.” I can’t go over it.”
He said, “The proportion of S&P companies that have recently announced their results exceeds the consensus by more than 90%.” “It was expected.
Researcher Ahn said, “Even though Samsung Electronics’ preliminary performance fell below the consensus earlier this month, the stock price rose sharply. It was more focused on the possibility of future earnings improvement rather than the past sluggish earnings, and the same is true for the KOSPI.” He then emphasized that “the important thing is not the past fourth quarter, but the direction of profit this year.”
Dae-Hoon Han, a researcher at SK Securities, also said, “A number of current leaders, including LG Chem and Hyundai Motors, are scheduled to announce their results this week, and tech companies’ performances are also announced in the US.” However, the supply and demand of individuals who emerged as the protagonists of supply and demand were also focused on large-cap stocks.”
“As the resumption of short selling, which is one of the biggest concerns in the first half of this year, is expected to be centered on large-cap stocks, it is a time when individuals can pay attention to small and mid-cap stocks. Small and mid-cap stocks with high attractiveness in terms of attractiveness can attract attention in the short term.”
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| Fed Chair Jerome Powell is holding a press conference after the FOMC regular meeting in Washington on the 29th (local time). The Fed froze the interest rate two times in a row following last month. © AFP=News1 © News1 Reporter Dongmyeong Woo |
One of the major events this week, the US FOMC, should also be noted. The stock market judged that the concerns of the market had subsided because Jerome Powell, chairman of the Federal Reserve System of the United States, said that now is not the time to consider tightening and that he would give enough time to raise interest rates and communicate with the market. Researcher Daehoon Han said, “It is highly likely that the existing position will be reconfirmed in this FOMC as well,” and predicted that “it could be a bit of a deadly FOMC.”
Lim Hye-yoon, a researcher at KTB Investment & Securities, said, “The Fed’s stance may not meet market expectations. The market hopes that the Fed will take further easing, in addition to blocking the possibility of weakening the strength of monetary easing and normalizing monetary policy. It is difficult to meet expectations.”
He added, “If financial conditions are stable, it is unlikely that there is a possibility of further easing immediately, and as the (Fed) believes that the economy is improving, we can be cautious about further easing.
Considering various events such as the earnings season and FOMC, NH Investment & Securities proposed this week’s KOSPI index band at 3120~3220p. NH Investment & Securities explained, “The US economic stimulus, solid personal supply and demand, and expectations for the introduction of a new coronavirus infection (Corona 19) vaccine in Korea are factors that increase the KOSPI, but the valuation burden and rising interest rates are factors of decline.”
In particular, regarding personal supply and demand, NH Investment & Securities researcher Kim Young-hwan said, “Since the beginning of the year, as individuals net buying more than 12 trillion won in the KOSPI market, there are concerns that individuals’ buying power will be exhausted too quickly, but considering the amount of net savings in households, individuals It can be seen that there is a lot of buying power,” he predicted, “assuming that 80% of net savings are spent on stock purchases as in 2007, the size of individual net purchases this year could increase to 157 trillion.”