© Archyde.com. Robust economic indicators vs inflationary pressure… “Next week, 2700 is difficult” [주간전망]
On the 27th, the KOSPI index finished trading at 2683.05 points, up 43.76 points (1.66%) from the previous week. photo = Yonhap News
This week (May 30 – June 3), the domestic stock market is expected to show conservative movements amid a mix of good news and bad news. The ISM manufacturing and employment report as well as Korea’s export and import trends in May are expected to show brisk results, while inflationary pressures and the re-spreading of the new coronavirus infection (COVID-19) are burdensome.
According to the Korea Exchange on the 29th, the KOSPI index finished trading last week at 2683.05 points, up 43.76 points (1.66%) from the previous week. In the past five trading days, individuals and foreigners sold 596.4 billion won and 207.6 billion won, respectively, and institutions net bought 798.6 billion won.
The KOSDAQ index also fell slightly from the previous week. The index closed at 873.97 on the 27th, up 2.54 points (0.29%) from the previous week. Individuals and institutions net bought 82.7 billion won and 67.1 billion won, respectively, while foreigners net sold 99.5 billion won.
The stock market this week is expected to show an uptrend in individual stocks as the good news is clear. Securities analysts believe that the index needs to expect positive momentum in individual industries outside of the economy. NH Investment & Securities presented the 2550-2670 range as a band.
Kim Young-hwan, a researcher at NH Investment & Securities, said, “The stock market is more concerned regarding inflation and economic slowdown concerns than the positive aspects of current economic indicators. It seems necessary,” he said.
The reason for the rise in the domestic stock market this week is the favorable performance of various economic indicators such as US employment and Korea’s exports. Early next month, the ISM manufacturing industry, the Beige Book, and the employment report are scheduled to be announced in the US, and the import and export trends in May are expected to be released in Korea. Combining the opinions of the stock market, all of these indicators are expected to perform well.
However, some argue that the volatility of the stock market is likely to continue until the May Consumer Price Index is released on June 10. For investors in the stock market, there’s nothing better than confirming inflation easing.
On the other hand, concerns regarding the re-spread of COVID-19 are a variable in the stock market. As of the 25th of this month, the average daily number of confirmed cases per week in the United States was 11446, up 10% from the previous week. Although the rapid increase is slow, it is worth paying attention to the fact that the number of new confirmed cases is increasing as the new mutation (BA.2) with strong contagious power has become the dominant species.
Researcher Kim selected automobiles, information technology (IT) hardware, games, and communications as industries of interest. He said, “It is necessary to pay attention to the automobile/electronic field, where shipments are expected to increase due to the easing of the shortage of automotive semiconductors (shortage), and the game field, where new momentum is expected.”
Shin Min-kyung, reporter at Hankyung.com [email protected]
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