[Weekly Market Outlook] "No Major Fluctuations Expected... Focus on Q1 Earnings"

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[Asia Economy Reporter Geum Bo-ryeong] Analysis suggests that the domestic stock market will experience little volatility in the second week of April.

According to the Korea Exchange on the 5th, the KOSPI index closed at 1725.44 on the 3rd, up 0.03% (0.58 points) from the previous session. Compared to 1717.73 on March 27, a week earlier, it shows a slight increase without significant fluctuation.

The securities industry predicts that the KOSPI will not show significant volatility during this week. Hana Financial Investment forecasted the KOSPI range to be between 1700 and 1800.

Kim Yong-gu, a researcher at Hana Financial Investment, stated, "In the second week of April, the domestic stock market is expected to develop a stock price trend above neutral, seeking to reclaim the KOSPI 1800 level." He explained, "Despite net selling by foreigners, there has been active comprehensive market attempts to recover losses, the shift from first-in-first-out regarding the impact of COVID-19 in Korea and China, the transformation of individual investors from the 'Donghak Ant Movement' to the 'Restoration of National Sovereignty Movement' leading to a 'Buy Korea' rush, and the global policy cooperation gathering moment by moment have functioned as catalysts for the market's rise."

NH Investment & Securities projected a range of 1660 to 1770, while Cape Investment & Securities forecasted 1660 to 1800. Yoon Young-gyo, a researcher at Cape Investment & Securities, said, "The market is expected to continue fluctuating according to COVID-19 related news flow, but the likelihood of volatility as large as in March is low. For foreign capital to re-enter, a stable decline in the won-dollar exchange rate (won appreciation) must be anticipated, but this also depends on whether the spread of COVID-19 slows down. The market direction will diverge depending on the success of treatment development before April. While active buying should be restrained, focus should be placed on sector positioning in preparation for a possible rebound after May."

The most notable factor this week is the domestic and international stock market earnings variables, led by Samsung Electronics' first-quarter earnings scheduled for the 7th. Considering the sharp decline in smartphone shipments in China, high volatility is expected in the IT & Mobile (IM) and Display divisions. Kim Byung-yeon, a researcher at NH Investment & Securities, emphasized, "The impact of COVID-19 is just beginning to be reflected, and since it is likely to affect not only the first quarter but also the second and third quarters' earnings, a conservative approach to net profit growth is necessary."

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