Low points confirmed, still a sector response zone... Samsung Securities Weekly Recommended Stocks

[Asia Economy Reporter Lee Seon-ae] As the market is expected to remain in a box range, investment strategies focusing on theme and sector rotation rather than indices have been advised.

According to the Samsung Securities Investment Information Team on the 29th, the KOSPI successfully held the 200-day moving average support but showed a lackluster rebound. Although the exchange rate, a key variable, has stabilized, meaningful net buying from foreign investors has not occurred due to concerns over the US-China economic slowdown and the spread of the COVID-19 Delta variant.

Samsung Securities emphasized, "The market is expected to continue in a box range for the time being, so we recommend responding with theme and sector rotation rather than focusing on indices," adding, "The first theme to watch in September is eco-friendly."

Favorable policies and events related to eco-friendliness continue both domestically and internationally. In Korea, Hyundai Motor Group's hydrogen business announcement and carbon neutrality policy momentum are notable, while in the US, the Biden administration's implementation of the second phase of fiscal policy is expected to accelerate investment momentum in eco-friendly infrastructure.

The second theme is undervalued stocks. The most vulnerable area when the market fluctuates is high-value stocks. Samsung Securities advised, "In a bullish phase, leading stocks perform well, but in a box range market like now, where leading stocks are absent, trading should be strictly focused on cheap stocks."

The final theme is bio. Global vaccine supply remains tight. Ultimately, coexistence with COVID-19 is only possible as vaccination rates increase. The stock prices of global CMO companies continue to show strong trends. Although expensive, attention is needed for bio companies with future growth potential.

Accordingly, Samsung Securities presented weekly recommended stocks as follows: 1) Eco-friendly: Samsung SDI, Kia, LG Electronics, EcoPro BM, Kolon Industries (new), Lotte Fine Chemical (new); 2) Undervalued companies: POSCO, Samsung C&T, E-Mart; 3) Bio: Samsung Biologics, among others.

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