[Weekly Market Review] 'V'-Shaped Rebound Pushes Close to Pre-COVID-19 Levels... Will Optimism Continue?

[Asia Economy Reporter Oh Ju-yeon] In the second week of February, the domestic stock market continued its 'V'-shaped rebound, influenced by optimism about the novel coronavirus infection (COVID-19), China's economic stimulus measures, and a robust U.S. stock market.

According to the Korea Exchange on the 15th, the KOSPI, which started with a decline of over 1% at 2185.63 on the 10th, narrowed its losses in the afternoon and settled around the 2201 level. Except for one day out of five trading days, it closed higher each day, ending the week at 2243.59 on the 14th. The weekly increase in the KOSPI was 1.93%.

[Image source=Yonhap News]

Samsung Electronics rose 3.52% from a closing price of 59,700 won on the 10th to 61,800 won on the 14th, while SK Hynix increased 5.77% from 98,800 won to 104,500 won during the same period.

In particular, electric vehicle battery-related stocks surged sharply due to Tesla's stock price increase, with LG Chem and Samsung SDI rising significantly. LG Chem's stock price reached 420,000 won on the 11th, hitting a 52-week high, soaring 44.32% from the 286,500 won low recorded on October 7 last year. Samsung SDI also hit a record high of 351,000 won on the same day, marking a 67.24% jump from the 201,500 won low on May 29 last year.

The KOSDAQ index rose 1.90% from a closing price of 676.07 on the 10th to 688.91 on the 14th.

On the previous day, Kiwoom Securities researcher Seo Sang-young analyzed, "The Korean stock market rose supported by the World Health Organization (WHO) stating that the rapid increase in confirmed cases does not indicate a significant change in the disease." He added, "Furthermore, the U.S. Department of Commerce's announcement of an additional extension of the temporary license for Huawei also had a positive impact." Seo also noted, "This boosted risk asset preference, as seen in the Chinese stock market turning upward, which was also positive. From a supply-demand perspective, foreign investors simultaneously net bought both spot and futures, driving the index higher."

However, he explained that concerns about economic slowdown and burdens from high valuations still tended to limit the rise.

Lee Kyung-min, a researcher at Daishin Securities, emphasized, "The key is the results of upcoming economic indicators." He stressed, "Global stock markets, including the KOSPI, have already succeeded in a 'V'-shaped rebound, but now it is time to verify the economic indicators for January and February (psychological indicators), which partially reflect the fear of infectious diseases."

This content was produced with the assistance of AI translation services.