Credit Suisse: "COVID-19's Impact on KOSPI Limited... Maintaining 2300 Level"

[Asia Economy Reporter Park Jihwan] The global investment bank (IB) Credit Suisse (CS) predicted on the 6th that the impact of the novel coronavirus infection (COVID-19) spread on the Korean stock market would not be significant. CS maintained its KOSPI target at the 2300 level for this year.

In its report titled 'Korean Market Strategy: Analysis of COVID-19 Impact' released that day, CS analyzed, "COVID-19 is having a negative impact on both demand and supply sides, and companies' earnings forecasts are also declining."

However, it stated, "The negative impact caused by COVID-19 is not structural but will be a temporary crisis," adding, "The economic cycle recovery may be delayed until the second half, but we maintain the KOSPI target at the 2300 level."

Regarding the automobile sector, CS forecasted, "Major manufacturers and related parts suppliers have faced production halts, but once the situation stabilizes, production losses can be compensated."

CS added, "When the market recovery begins, sectors that have recently experienced downturns such as energy, industrials, cosmetics, and banks will show initial rallies."

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