Samsung Securities "Focus on Boxpi and Themes for the Time Being"

On the 26th, the KOSPI opened at 3,151.30, up 4.49 points (0.14%) from the previous trading day, at the Hana Bank dealing room in Jung-gu, Seoul. On the same day, the won-dollar exchange rate opened at 1,165.0 won, down 3.1 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Junho Hwang] Due to external environmental changes such as the spread of the COVID-19 Delta variant and the interest rate hike in South Korea, the market is expected to remain in a box range for the time being. It is forecasted that investors should respond to themes and sectoral rotation rather than focusing on indices.

On the 28th, Samsung Securities announced this outlook through its stock market forecast for the first week of September.

The theme to watch next month is eco-friendliness. This is because favorable policies and events related to eco-friendliness continue both domestically and internationally. In Korea, there is the Hyundai Motor Group's hydrogen business announcement and momentum from carbon neutrality policies, while in the U.S., investment momentum related to eco-friendly infrastructure is expected to accelerate through the Biden administration's second-stage fiscal policy implementation. Stocks that fit this theme include Samsung SDI, Kia, LG Electronics, EcoPro BM, Kolon Industries, and Lotte Fine Chemical.

Secondly, it is necessary to look into undervalued stocks. The most vulnerable area when the market fluctuates is high-value stocks. In a bullish phase, leading stocks perform well, but in a box range market like now, where there are no leading stocks, trading focused strictly on cheap stocks is necessary. Stocks corresponding to this theme include POSCO, Samsung C&T, and E-Mart.

Shin Seung-jin, a researcher at Samsung Securities' Investment Information Team, analyzed, “Bio is also a theme worth noting,” adding, “Global vaccine supply remains tight, and the stock prices of global CMO companies continue to show strong trends, so attention to bio companies is necessary.”

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