KOSPI Recovers 7,000 Mark, Market Sees Overall Upturn

Today, the KOSPI rose 1.5% to 7,059. This marks the first time it has settled above the 7,000 mark based on closing prices since July 23, acting as a positive signal for the market.

This reflects the overall increase in market activity and improved investor sentiment.

Furthermore, market expectations formed after the announcement of GPT-6 'Astra' also had a positive impact.

Looking at option positions, call selling is concentrated from 1,130 points, indicating an expectation of the index rising to that range.

There was a difference in stock performance between Samsung Electronics and SK Hynix within the semiconductor sector. This is analyzed to be due to differences in exposure related to their High Bandwidth Memory (HBM) contracts with Nvidia. Additionally, differences in the scale of treasury stock buybacks relative to market capitalization also appear to have influenced stock performance.

The KOSPI, which had consistently traded below 2,700 since July 23, rose 1.4% today, gaining 97 points. The KOSDAQ also showed strong performance, rising 2.28%.

As the U.S. government pressures Ford to sever ties with Chinese companies like CATL and Geely Automobile, expectations are growing that Korean secondary battery companies will benefit. The prospect of Chinese components being excluded from the EV market could highlight the competitiveness of Korean companies, leading to improved supply and demand across secondary battery-related stocks.

It is necessary to continuously observe the stock's trend in connection with future industry conditions.

This is attributed to improved supply and demand due to a weaker dollar and China's restructuring, despite rising oil prices. Expectations for higher petrochemical product prices and a turnaround to profitability appear to be reflected in the stock prices.

Decreasing crude oil and middle distillate inventories are exacerbating supply shortages, putting upward pressure on oil prices. Bank of America also warned of the possibility of oil prices rising to $120-150.

Due to the surge in oil prices, the Consumer Price Index (CPI) and Producer Price Index (PPI) are expected to exceed market forecasts. Therefore, it is advised to exercise caution and avoid aggressive buying until the inflation data is released. A strategy of maintaining current positions and observing market conditions is deemed appropriate.

Amid a recent decline in AI-related investor sentiment, power and energy stocks are gaining prominence over AI memory-related stocks. This is because even with increased investment in AI data centers, actual investment cannot be absorbed if power shortages are not resolved. As power bottlenecks intensify, energy-related stocks such as nuclear power, solar, and hydrogen have seen sharp rises in the U.S. market.

As fuel cells, which can be applied faster than nuclear power, gain attention, Doosan Fuel Cell's status in the market is changing. Doosan Fuel Cell specializes in Phosphoric Acid Fuel Cells (PAFC), and its leadership is highlighted by recent speculation of orders from big tech companies for PAFC systems. This differentiates it from Blue Energy in the U.S., which primarily uses Solid Oxide Fuel Cells (SOFC).

Foreign investors currently maintain a net buy of 28,000 futures contracts and are limiting the upside of the index through call option selling positions. Considering these positions, the KOSDAQ index is expected to rise to at least near 1,130 points, with a short-term maximum of 7,100-7,200. Foreign investors appear to be employing a strategy to maximize profits by pushing the index to this range.

A strategy of reducing positions in the latter half of the day to prepare for risk is necessary. It is also important to respond cautiously to unforeseen market variables such as war situations.

The semiconductor materials and components sector continues to have a positive outlook and is recommended for inclusion in investment portfolios. In contrast, for secondary battery stocks, as they have already shown an uptrend, it is suggested that they are in the realm of existing holders and chasing purchases should be avoided. For the nuclear power sector, a strategy of separating short-term and long-term investment funds is proposed, considering supply and demand effects.