“KOSPI Rebounds Rapidly, but Variables Remain: ‘I Haven’t Bought Yet and Prices Already Surged’”

With the KOSPI recouping its losses from the war and nearing its previous highs, the electricity, securities, and semiconductor sectors have recovered from the shock of the war and are now trading at levels seen before the conflict.

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KB Securities identified Hyosung Heavy Industries, LS ELECTRIC, Mirae Asset Securities, Samsung Electronics, SK hynix, Leeno Industrial, Wonik IPS, Yes T, Doosan Fuel Cell, and PNT as stocks that initially fell due to the war but have since rebounded. Kim Minkyu, a researcher at KB Securities, explained, "Although there was a shock from the war, it was short-lived and did not alter the overall trend," adding, "Most of these stocks are also expected to see profit growth."

Meanwhile, sectors that continued to rise steadily despite the war include defense, IT hardware, and battery materials. Representative stocks in these sectors are HD Hyundai Energy Solutions, OCI Holdings, Seojin System, Hanwha Aerospace, APR, Daeduck Electronics, RFHIC, Daejoo Electronic Materials, PSK, L&F, and Vitzrocell. Kim noted, "To determine whether these are short-term gains driven by the war or stocks with sustained momentum regardless of conflict, we selected only those whose share prices were already on the rise before the war," adding, "These stocks maintained their momentum even in the face of war."

However, it is important to keep in mind that the war has not yet ended. Kim emphasized, "The war is ongoing, and variables such as oil prices and interest rates, which the war has affected, have not returned to pre-war levels-even though share prices have. This could indicate that expectations are being reflected too quickly. For stocks that have recovered to pre-war levels after falling due to the war, it is necessary to reassess their fundamentals in case the conflict escalates again."

For stocks whose momentum was not dampened by the war, volatility should be closely watched. Kim added, "Since the share prices of these stocks are often driven by their individual themes rather than macroeconomic events, it is important to remember that they may be subject to significant volatility."

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