[Good Morning Stock Market] KOSPI Expected to Start Down 0.5%... Focus on Earnings of Samsung and Others

On the 27th, the domestic stock market is expected to start slightly lower.

The previous day, the New York stock market closed mixed as major indices showed uncertainty due to the mid-sized bank First Republic Bank, known as the second Silicon Valley Bank (SVB), despite strong earnings from large big-tech companies.

On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 33,301.87, down 0.68% (228.96 points). The Standard & Poor's (S&P) 500 index, centered on large-cap stocks, closed at 4,055.99, down 0.38% (15.64 points) from the previous trading day, while the tech-heavy Nasdaq index closed at 11,854.35, up 0.47% (55.19 points) from the previous trading day.

[Image source=Yonhap News]

Among the 11 sectors of the S&P 500 index, all sectors except technology declined. Consumer discretionary fell 0.38%, consumer staples 0.74%, energy 1.28%, financials 0.96%, healthcare 1.41%, industrials 1.87%, materials 1.18%, real estate 0.83%, technology rose 1.73%, communication services 0.62%, and utilities 2.37%.

Sangyoung Seo, a researcher at Mirae Asset Securities, said, “The strength of large tech stocks driven by Microsoft is positive for the Korean stock market,” but added, “Since this was already reflected the previous day, the impact is expected to be limited.” Seo explained, “Rather, the fact that most sectors showed weakness reflecting economic slowdown except for some stocks in the U.S. market will increase profit-taking desires in the Korean stock market.” Accordingly, Seo forecasted that the domestic stock market would start down about 0.5% and then go through a process of digesting selling pressure while focusing on individual corporate earnings results such as Samsung Electronics and LG Chem.

What stands out today is the earnings of major companies such as Samsung Electronics. Since earnings events for major companies like Samsung Electronics, Samsung SDI, and S-Oil are scheduled one after another, the rebound momentum between sectors and stocks is expected to vary as these earnings results are absorbed.

Ji-young Han, a researcher at Kiwoom Securities, said, “Especially, SK Hynix showed a sharp rise in stock price despite recording a large deficit, forecasting market recovery in the second half of the year,” and added, “Samsung Electronics, which officially announced artificial production cuts earlier this month, will be a key point of interest during the conference call to see whether the timing and scale of production cuts and industry outlook guidance will support the bottoming and recovery outlook of the industry.”

Han also noted, “There are stocks such as Samchully and Daesung Holdings that hit the lower price limit for the first time through a specific foreign window last Monday and have not yet lifted the lower limit until the day before, which seems to distort the supply and demand conditions of small and mid-cap stocks and the overall KOSDAQ market.” He forecasted, “The KOSDAQ market may be affected by price changes in these stocks, but the overall additional adjustment range of stock prices caused by such supply and demand noise from small and mid-cap stocks will be limited.”

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