Next Year's Key Industry Keywords: "Content, Eco-friendly, Bio" in Focus

On the 21st, the KOSPI opened at 3,012.28, down 0.85 points (0.03%) from the previous trading day, then turned to a slight upward trend after early gains. The won-dollar exchange rate opened at 1,175.5 won, up 1.3 won from the previous trading day. The photo shows the Hana Bank dealing room in Jung-gu, Seoul on the day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Junho Hwang] KB Securities identified content, eco-friendly industries, and bio sectors as the themes that will lead the stock market next year. In its stock market outlook for next year, KB Securities predicted on the 30th that following this year's tightening adjustment, the economic cycle will rebound in the second half of next year, and the rally of leading stocks will continue.

KB Securities evaluated that although corporate profits this year turned out to be much better than initially expected, concerns over tightening suppressed the market. They further anticipated a rebound rally after next year's tightening adjustment. However, this rally is likely to occur more through valuation expansion rather than profit expansion, influenced by factors such as a policy shift in China around the year-end and beginning of the year, and easing inflation concerns after the start of the year.

As leading stocks, they pointed to small and mid-cap growth stocks, among which the growth of content (media/entertainment/games), eco-friendly sectors (including batteries/hydrogen/nuclear power), and bio sectors is expected to be prominent. They observed that in the content industry, once the penetration rate exceeds 60% (maturity phase), service demand tends to surge, and the platform industry is entering this phase. The eco-friendly sector was highly rated due to the paradoxical effect of rising energy prices and various countries' eco-friendly policies, which are expected to increase demand for clean energy. Regarding bio, they anticipated price attractiveness due to next year's stock price adjustment and the resumption of clinical trials.

Researcher Euntaek Lee of KB Securities said, "The KOSPI target for next year is 3600," adding, "When the Federal Reserve announces tapering and begins reducing asset purchases around the year-end and beginning of the year, market volatility may repeat, but after passing this period, the market will bottom out, and the economic cycle will prepare to rebound in the second half of next year."

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