[Click eStock] "KOSDAQ to Rise Further Following KOSPI"

On the 19th, Korea Investment & Securities forecasted that the KOSDAQ would follow the KOSPI's upward trend due to factors such as eased price burdens, expectations for government policies, and the possibility of a decline in market interest rates. Accordingly, they maintained a buying perspective on the KOSDAQ market.

Kim Dae-jun, a researcher at Korea Investment & Securities, stated, "Since the beginning of this year, attention has been focused on the KOSPI first due to value-up expectations. However, considering the aforementioned price, policy, and macro environment, it is highly likely that the KOSDAQ will follow suit."

Kim cited three reasons to watch the KOSDAQ market: △price, △government policy support, and △inflation easing along with base interest rate cuts.

He said, "In terms of price, the overvaluation burden is less compared to the KOSPI. Looking at recent stock price trends, the KOSPI has almost reached its previous peak, but the KOSDAQ has not yet risen to that level. It is reasonable to interpret this as meaning there is still room for further increase."

The second factor predicting KOSDAQ strength is policy. Currently, it is estimated that about 14.24 million individuals invest in the domestic stock market as of 2022. Kim explained, "From the government's perspective, if there is a large number of citizens involved, it naturally becomes a concern. Therefore, the ultimate goal should be to raise stock prices, and from the KOSDAQ side, stock prices need to be lifted at least to the 2021 level when individual shareholders significantly increased."

He viewed policy support as the most effective way to stimulate the market. However, he argued that the government is more likely to support the KOSDAQ through tax benefits rather than the corporate value-up programs recently announced as part of stock market stimulus measures.

He said, "This time, while reflecting on past policies, it is highly likely that policies will be designed to provide direct support to investors. For example, rather than stimulating a situation where it is difficult to significantly increase dividends, policies might move toward offering tax benefits to individuals investing in KOSDAQ companies or alleviating burdens related to inheritance and gifts in business operations."

The macro environment is also expected to contribute to the KOSDAQ's rise. In particular, inflation easing and base interest rate cuts are seen as beneficial to the KOSDAQ.

Researcher Kim analyzed, "In Korea, market interest rates have recently been moving below the base interest rate, and if U.S. interest rates show a downward trend, it is clear that Korea will be affected. If benchmark interest rates move, corporate bond rates will also move in the same direction, and considering future interest rate declines, the KOSDAQ, which is more sensitive to interest rates, can show a stable upward trend."

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