KOSPI Continues to Fluctuate in a Narrow Range... "Time to Secure Stocks with Continued Earnings Improvement"

[Image source=Yonhap News]

[Asia Economy Reporter Ji-hwan Park] On the 14th, the KOSPI, which started higher, has been fluctuating around the 3070 level, alternating between declines and rises within a narrow range. It began the day higher influenced by the rise in the US Nasdaq and large technology stocks, but the upward momentum gradually narrowed as the market digested selling pressure following the previous day's gains. Market experts advise that now is the time to preemptively secure stocks expected to continue their earnings improvement trend through the second quarter, following the first quarter.

As of 10:50 a.m. on the day, the KOSPI stood at 3171.25, up 2.17 points (2.17) from the previous trading day. The index started at 3169.95, up 0.87 points (0.03%) from the previous close, and fluctuated around the 3170 level.

Yumi Kim, a researcher at Kiwoom Securities, explained, "The domestic stock market started higher due to the rise in Nasdaq and large technology stocks, but with the US earnings season about to begin in earnest, the upward momentum appears to have gradually narrowed as the market continues to digest selling pressure from the previous day's gains."

By investor type, foreigners alone defended the index with net purchases of 66.7 billion KRW. Individuals and institutions net sold 1.9 billion KRW and 74.7 billion KRW, respectively.

Among the top market capitalization stocks, NAVER (1.29%), LG Chem (2.53%), and Hyundai Motor (1.52%) showed strength. Meanwhile, Samsung Electronics and SK Hynix fell by 0.48% and 1.43%, respectively, likely influenced by the overnight declines in major semiconductor stocks such as Micron in the US market.

At the same time, the KOSDAQ index rose 2.07 points (0.20%) to 1012.44 compared to the previous trading day. The index started at 1011.35, up 0.98 points (0.10%) from the previous close, and continued to fluctuate within a narrow positive range.

In the market, individuals were net buyers with 94.3 billion KRW. Foreigners and institutions were net sellers of 58.4 billion KRW and 21.5 billion KRW, respectively.

Among the top 10 by market capitalization, Celltrion Healthcare (0.22%) and Celltrion Pharm (1.43%) rose. Conversely, Kakao Games (-1.07%), Seegene (-1.18%), and HL Biopharma (-0.70%) declined.

Market experts advise focusing on stocks expected to maintain strong earnings momentum through the second quarter following the first quarter. Kyung-soo Lee, a researcher at Hana Financial Investment, said, "A market tendency is observed where the direction of earnings, a recent market theme, is directly linked to stock price performance. If you pre-select based on current consensus, you can prepare for the next earnings season at the point where interest shifts." He added, "In particular, sectors such as securities, steel, refining, and chemicals have shown very strong profit momentum, with second-quarter earnings forecasts raised by more than 10% over the past month."

Kyung-min Lee, a researcher at Daishin Securities, predicted, "In the upcoming phase of strengthening the KOSPI's upward trend, internet and secondary battery sectors that surpassed historic maximum profits last year, as well as semiconductor and automobile sectors expected to exceed historic maximum profits in 2021 and 2022, will take center stage."

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