"Focus on Consumer Goods Stocks Next Month"

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 stated that next month is the time to increase stock weight and set the KOSPI expected band at 2870~3140.

On the 31st, KB Securities said in its 'November Monthly Strategy' report, "Concerns about market corrections and economic slowdown continue, and if the US actually begins tapering, a short-term market correction could occur early next year."

However, in countries where inflationary pressures are not severe, policy shifts to revive the market can be expected as the market situation worsens. Although inflationary pressures may persist for a while, KB Securities expects that after the year-end and New Year period, it will be confirmed as a short-term phenomenon.

In this situation, they believe it is necessary to focus more on sector strategies. There may be some profit-taking desires in the small and mid-cap growth stocks that have surged so far, while sectors that have been neglected could receive supply-demand momentum. They analyzed that attention should be paid to neglected sectors such as consumer goods (cyclical consumer goods/essential consumer goods).

KB Securities diagnosed the current market as a situation where it is catching its breath at the bottom after a correction, before the leadership shifts from value stocks to growth stocks. In this situation, it is necessary to pay attention to neglected stocks, as they are more likely to lead at the beginning of a rebound. Considering this, they forecast that attention should be given to value-type stocks that have been neglected, such as automobiles and food and beverages.

Researcher Euntaek Lee of KB Securities said, "As the year-end approaches, the desire for profit-taking may increase, but this is a supply-demand issue unrelated to fundamentals," adding, "Growth stocks such as media/entertainment/content, which have recently risen sharply, may have strong profit-taking desires, but supply-demand fluctuations could rather become buying opportunities when looking toward next year."

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