[Good Morning Stock Market] KOSPI Expected to Start Flat... Continued Stock-Specific Market

On the 24th, the KOSPI is expected to start in a narrow range and then show a stock-specific market.

Last Friday on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,808.96, up 22.34 points (0.07%) from the previous session. The Standard & Poor's (S&P) 500 index rose 3.73 points (0.09%) to 4,133.52, and the Nasdaq index closed at 12,072.46, up 12.90 points (0.11%) from the previous session.

[Image source=Yonhap News]

In the New York stock market, regional bank stocks weakened as Trust Financial, the seventh largest bank in the U.S., reported poor earnings. Lithium-related stocks also declined following the Chilean government's announcement of plans to nationalize the lithium industry. However, companies with improved earnings showed strength, keeping the overall index in a narrow range without a clear direction.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.97%, and the MSCI Emerging Markets Index ETF dropped 0.94%. KOSPI 200 futures declined by 0.03%. Considering this, the KOSPI is expected to start in a narrow range.

Seosangyoung, a researcher at Mirae Asset Securities, said, "The New York stock market is showing a stock-specific market with increased volatility depending on individual sectors and stock issues without a clear direction, and the domestic market will show a similar trend." He added, "Among them, the Philadelphia Semiconductor Index fell 0.82%, and lithium-related stocks also showed weakness, which will likely increase profit-taking desires for related stocks in the domestic market."

However, he noted, "Of course, the improvement in the U.S. and European service sector PMIs, which alleviates recession concerns, will have a positive impact." He also analyzed, "In particular, the fact that foreigners continue a net buying trend centered on Samsung Electronics is favorable." He continued, "Considering this, the domestic market is expected to start in a narrow range and continue a stock-specific market while focusing on foreign demand ahead of the earnings announcements of major U.S. tech companies and key economic indicators."

Kiwoom Securities expects the KOSPI to move between 2,480 and 2,590 this week. It is anticipated to enter a range-finding phase influenced by the earnings of major U.S. big tech companies such as Microsoft (MS), Alphabet, and Apple, as well as domestic major large-cap stocks like Samsung Electronics, SK Hynix, and Hyundai Motor, along with U.S. PCE inflation data and early May Federal Open Market Committee (FOMC) cautious sentiment.

Han Ji-young, a researcher at Kiwoom Securities, said, "Samsung Electronics' conference call scheduled at the end of the month, which officially confirmed artificial production cuts through preliminary earnings in early April, will be a key factor determining the direction of semiconductor stocks whose stock prices have stagnated since mid-April." She added, "Whether the outflow of funds from secondary battery stocks such as Ecopro, which dragged down the KOSDAQ by 4.4% over two trading days from Thursday to Friday last week amid a sharp simultaneous decline, will continue will also affect the overall domestic stock market during the week."

Meanwhile, last week, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York was 1,328.21 won. Reflecting this, the won-dollar exchange rate is expected to start down by 1 won on the day.

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