KOSPI Enters Stability Zone at 6,500, Signs of Supply-Demand Shift Spotted…Focus on Non-Semiconductor Sectors

The KOSPI index bottomed out at 5,500 and rose above 6,000. It is now considered to have entered a stability zone, setting 6,500 points as a support level. As a result, concerns about downside risk and losses have significantly decreased.

The KOSPI index has stopped its downward trend and is showing a rebound pattern with higher lows and higher highs, which is interpreted as a positive sign. Compared to past bear markets, individual investors' psychological stability has increased.

As the overall market sentiment improves, investment sentiment is also recovering. This is expected to be an important foundation for securing future market upward momentum.

Signs have been detected that supply and demand, which had previously concentrated on the semiconductor sector, are now shifting to other sectors such as cosmetics, insurance, nuclear power, food and beverage, and financial stocks. New sectors are starting to stand out in the market, and the number of stocks showing a sustained upward trend is increasing.

However, it is necessary to carefully determine whether this shift in supply and demand will lead to a full-fledged trend reversal. The flow of supply and demand is difficult to predict, so premature conclusions should be avoided.

This phenomenon is interpreted as a reflection of overall market stabilization and investors' desire for portfolio diversification. A strategy of diversifying investments rather than concentrating on specific sectors is becoming important.

Foreign investor supply and demand has fluctuated, but recently shows a slight upward trend. There are slight signs of entry from a wait-and-see stance, mainly in the futures market.

Domestic institutional investors (insurance companies, investment trusts, pension funds) are selectively buying specific stocks. Although not aggressive buying, inflows of institutional and foreign funds are being observed.

An analysis suggests that the composition of leading stock groups will differ depending on whether the future market direction leads to a full-fledged index rally or a prolonged period of mixed trading. If a full-fledged index rally occurs, a rally centered on large-cap stocks is highly probable.

On the other hand, if the period of mixed adjustment is prolonged, a selective rally is likely to occur. It is advisable to avoid rashly concentrating investments based only on the movements of non-semiconductor sectors at present.

As K-culture spreads globally, K-Beauty and K-Food related stocks are attracting market attention. In the K-Beauty sector, Cosmax, Korea Kolmar, APL, and Pharmaresearch are showing a rebound.

In the K-Food sector, some stocks like Samyang Foods, Nongshim, and Binggrae are showing movement. This is a selective rebound phenomenon, appearing in specific stocks rather than all stocks.

While chemical, construction, insurance, and biopharmaceutical stocks may appear to be soaring, a look at their charts often reveals that they are merely rebounding from recent significant declines. Some stocks, such as Lotte Chemical, are not seeing large increases but simply recovering recent losses.

A warning has been issued that succumbing to impatience due to this illusion and selling currently held stocks could lead to losses. Investors need to analyze the market from a long-term perspective, without being swayed by short-term movements.

An analysis suggests that the KOSPI index has firmly established 6,500 points as a support level, entering a stability zone. This means that the index's downward trend has stopped and it has transitioned to a rebound pattern with higher lows.

The absence of downside concerns is expected to positively impact investor sentiment. As the overall market atmosphere stabilizes, a foundation has been laid for investors to participate more actively in the market.

During the first rally period, all brokerages raised the target prices for Samsung Electronics and SK Hynix, expecting strong performance. This could have been interpreted as a signal of the index's peak at the time.

However, current brokerage reports show a completely diversified view. There is a growing perspective to lower the target prices for Samsung Electronics and SK Hynix, and to diversify portfolios, highly valuing the possibility of a rebound centered on peripheral stocks.

This change in brokerage reports could lead to diversification of individual investor supply and demand, which is ultimately expected to have a favorable impact on semiconductor stock prices.

Consecutive positive candlesticks yesterday and today indicate positive market signals. This suggests the possibility of the KOSPI index recovering to the 7,000 level.

Along with these short-term upward signals, MB's earnings announcement is being positively evaluated, and a Russian broadcaster's report that Iran-US negotiations are underway is also attracting attention. If the war ends, it could act as a strong positive catalyst.

Key sectors to continuously watch include large-cap semiconductor stocks, securities stocks, and secondary batteries. These sectors are expected to play a crucial role in leading the market.

Emerging trend-following stock groups include nuclear power and construction sectors, and the already rising cosmetics sector was also mentioned as a point of interest. Recently, food & beverage and construction stocks are showing strong movements.

Among sectors seeing increased supply and demand, securities stocks are at the forefront, followed by bank and insurance stocks. Investment strategies need to be adjusted in line with these sector changes.

The trend for K-Beauty and K-Food sectors is positive, but since stock prices have risen significantly in a short period, new chasing purchases could be burdensome. In K-Beauty stocks, Cosmax, Korea Kolmar, Cosmecca Korea, and Silicon2 have already shown upward trends.

In the food and beverage sector, Samyang Foods' Buldak series, Nongshim, and Binggrae are attracting attention due to expanding overseas sales. The growing global interest and spread of K-Beauty and K-content are positive trends.

However, it was pointed out that these stocks tend to rise only when the index or large-cap stocks are sluggish, and could quickly decline if semiconductor stocks rise. Since many positive factors have already been reflected in the short term, cautious approach is needed.

APR and Pharmaresearch, among others, are competitive stocks that are still worth considering. For these stocks, a strategy of maximizing profits for current holders is effective.

Signs of subtle revival in supply and demand are appearing across the financial sector, including bank, securities, and insurance stocks. In particular, foreign and institutional buying is confirmed to be flowing into bank stocks.

Securities stocks require separate analysis, and institutional buying is underway for major bank stocks such as KB Financial, Shinhan Financial Group, Hana Financial Group, and Woori Financial Group. This suggests an increase in the overall investment attractiveness of financial stocks.

This shift in supply and demand is interpreted as a result of market stabilization and expectations for improved performance in the financial sector. Investors need to take a selective approach to individual stocks within the financial sector.

Samsung Electronics rose by about 30% from 200,000 won to 260,000 won, and SK Hynix rose by about 20% from 1.2-1.3 million won to 1.68 million won. Both stocks are attempting to reverse their downward trend and switch to an uptrend.

However, the slope of the rebound is still weak, and they are repeating fluctuations. It was emphasized that a market led by foreign and institutional investors may proceed slowly.

This suggests that it may take more time for large-cap semiconductor stocks to lead the overall market trend. Investors should approach from a long-term perspective rather than being swayed by short-term volatility.

Samsung Electronics and SK Hynix are currently considered the most undervalued stocks in the global market. Brokerage reports continue to lower their outlook on these stocks, and individual investors' credit is also decreasing.

It is expected that stock prices will rise when they are no longer the focus of everyone's attention. Ultimately, Samsung Electronics and SK Hynix are projected to lead the overall bull market.

NVIDIA's earnings announcement and the US FOMC meeting are likely to be turning points in determining the direction of these stocks. Market direction is expected to become clearer through these important events.

An 'aggressive accumulation strategy' for securities stocks has been emphasized, declaring a shift in investment strategy. Institutional investors are emerging as the leading accumulators of securities stocks.

Large-cap securities stocks such as Korea Investment Holdings, Mirae Asset Securities, Samsung Securities, NH Investment & Securities, and Kiwoom Securities are particularly highlighted. These stocks can expect benefits from market stabilization and increased trading volume.

Additionally, small and medium-sized securities stocks like DB Financial Investment, Kyobo Securities, and Daishin Securities have been suggested as undervalued stocks. Improved performance for securities firms is expected along with overall market revitalization.

A forecast suggests that if the Republican Party loses the US midterm elections, the US electric vehicle market is highly likely to revive. If Trump wins the midterm elections, the US could become internationally isolated, so the Republican Party is expected to have a high chance of losing.

This political change could positively impact the US electric vehicle market, leading to an opportunity for Korean companies to reclaim the secondary battery market lost to China.

Korean companies are in a position to strengthen their competitiveness in the global electric vehicle market based on their technological prowess and production capabilities. Attention is focused on whether changes in US policy will inject new vitality into the domestic secondary battery industry.