[Good Morning Stock Market] "Expect Sector-Differentiated Market... Focus Needed on Earnings Stocks"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] Voices are growing that stock-specific market phenomena will become more distinct in domestic and international stock markets. Market experts predict that in the increasingly pronounced stock-specific differentiation trend, special attention should be paid to earnings-driven stocks. There is also advice that now is the time to invest in stocks that can benefit positively from the economic reopening following the containment of the novel coronavirus disease (COVID-19) crisis.

◆ Sangyoung Seo, Researcher at Kiwoom Securities = The U.S. stock market rose with continued differentiation based on individual sector-specific factors. In particular, Tesla showed strength following news of a surge in automobile sales in China. Additionally, large technology stocks led the rise based on economic indicators showing a sharp increase in advanced technology sector production. Furthermore, positive news about renewable energy and streaming companies contributed to the strength of related stocks.

These changes are expected to have a positive impact on electric vehicle-related stocks and Green New Deal-related stocks in the Korean stock market. It is also important to note that Apple saw sell-offs after its new product announcement, and the financial sector and construction industry, which have raised concerns about earnings, showed weakness. This indicates that even if positive news emerges for stocks that have risen significantly so far, sell-offs are inevitable if clear results do not follow, and there is an increasing tendency to focus on earnings. The Korean stock market is likely to continue a theme-driven market differentiated by individual sectors, with a strong focus on fundamentals such as earnings.

◆ Soyeon Park, Researcher at Korea Investment & Securities = It seems to be the time to consider investing in the economic reopening. We have reached a point where balancing quarantine measures and the economy must be considered. In China, retail sales in August recorded a positive year-on-year growth for the first time since the spread of COVID-19. China successfully controlled the spread of COVID-19 and started economic reopening early, which is driving both consumption and production.

In Korea, temperatures have started to drop, and autumn is approaching quickly. This is a timing when concerns about a resurgence of COVID-19 arise. Australia, located in the Southern Hemisphere where June to August is winter, recorded 18,814 new confirmed cases and 712 deaths since July, with a fatality rate of 3.8%. While this is not negligible, it is significantly lower than the initial fatality rates in the U.S. and Europe (around 8%). Despite a surge in confirmed cases, the U.S. and Italy have maintained relatively stable control over death rates compared to the early stages. It is a time to consider balancing quarantine and economic factors. A balanced approach to growth and value is recommended.

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