Cold Wind on KOSPI, Will It Drop to 2900?

On the 1st, the KOSPI index started lower due to the sluggish U.S. stock market. Dealers are working in the dealing room of Hana Bank in Euljiro, Seoul. The won-dollar exchange rate opened at 1,185.0 won, up 1.0 won from the previous session, showing a stable trend. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Junho] There is a forecast that the KOSPI will fall below the 3000 mark this month. Investors are growing increasingly concerned as the KOSPI has been sliding for three consecutive months until the end of last month.

According to the Korea Exchange on the 1st, the KOSPI recorded 3068.82 on the 30th of last month. It rose 0.28% from the previous day but fell 2.39% compared to the previous month, closing the September session. The KOSPI, which recorded 3296.68 at the end of June, has dropped for three consecutive months until the end of last month, falling by 6.91%.

What deepens investors' sighs is the forecast that the KOSPI could drop to 2900 this month. NH Investment & Securities predicted that the KOSPI could fall as low as 2920 this month. Eun-Taek Lee, a stock strategy researcher, said, "Among various uncertainties, the most serious is 'inflation,' which will be a turning point around mid-month and could temporarily lower the KOSPI's bottom."

Labor Gil, a strategy researcher at Shinhan Financial Investment, also suggested a KOSPI bottom of 2950, diagnosing, "There are more negative factors than positive ones for the stock market, such as sharp rises in inflation and market interest rates, worsening global supply chain disruptions, energy supply shortages in China and Europe, and the default risk of Evergrande Group."

Although the atmosphere is leaning toward a fourth consecutive month of decline, experts unanimously agree that a contrarian strategy is necessary. They advise taking this as an opportunity for bargain buying. They believe large-cap stocks will be more advantageous until the end of the year than small and mid-cap stocks, and agree that semiconductor and automobile sectors should be targeted when supply chain disruptions ease. In particular, if 'With Corona' begins in Korea, related industries are expected to gain attention within this month.

Researcher Dae-Jun Kim of Korea Investment & Securities predicted, "Since the current inflation reflects the strength of crude oil prices, the energy (refining) sector is a focus, and because high inflation causes interest rate hikes, interest in the financial sector will also increase."

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