Next Week's Domestic Stock Market... Partially Recovers Decline "Focus on 2800 Upside Potential"

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[Asia Economy Reporter Lee Seon-ae] Next week, the domestic stock market is expected to partially recover from its decline and show a gradual rebound. This is due to the resolution of uncertainties following the conclusion of the March Federal Open Market Committee (FOMC) meeting, stabilization of international oil prices, and easing concerns over a Russian default, which are anticipated to restore confidence.

According to the financial investment industry on the 19th, securities firms forecast that the KOSPI will fluctuate between 2650 and 2800 next week.

Hana Financial Investment projected the KOSPI range for next week to be between 2650 and 2780. Researcher Lee Jae-seon of Hana Financial Investment stated, "We expect a trend that partially recovers the previous decline," adding, "This is because the sharp rise in WTI, which had increased upward pressure on inflation, has stabilized, signals of stimulus from the Chinese government have been detected, and the U.S. Federal Reserve (Fed) has emphasized its intention to pursue an exit strategy without damaging the economy." Lee also assessed that among sectors, IT (semiconductors, hardware, home appliances) is likely to attract bargain buying, considering that the stock price adjustment was more severe compared to this year's earnings upward revisions.

NH Investment & Securities forecast the KOSPI to fluctuate between 2650 and 2800. Researcher Kim Young-hwan of NH Investment & Securities said, "Despite negative factors such as the Fed's additional rate hike announcement this week and rising international oil prices, the stock market rebounded," adding, "As the stock market shows increased resilience to adverse factors, a gradual rebound is expected, and it is time to focus on the potential for further gains." Given the ongoing geopolitical risks from the conflict between Russia and Ukraine, domestic consumer sectors with low exposure to external risks and growth stocks that have been excessively depressed were highlighted as noteworthy.

Meanwhile, this week the KOSPI closed at 2707.02, up 45.74 points (1.72%) from the previous week. Foreign investors, who had been selling off nearly 5 trillion won for eight consecutive trading days, showed buying interest in the last two trading days, supporting the index. Researcher Lee Kyung-min of Daishin Securities analyzed, "Variables of uncertainty that had increased downward pressure on the KOSPI and global stock markets have simultaneously eased, leading the KOSPI to attempt to recover the 2700 level."

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