KOSPI's Wait-and-See Stance Deepens Ahead of FOMC

Major communication equipment stocks such as KMW and RFHC surged after industrial reports highlighted a 'shortage' keyword, indicating supply scarcity. These stocks had relatively low price positions, and communication equipment stocks related to quantum and optical communications are also drawing attention as the possibility of rotational trading is raised. Seven industry reports published by Hana Financial Investment served as a catalyst for the rise.

Robot stocks like Now Robotics and Namuga showed strength as issues related to humanoid joints and reducers came to the fore. This mirrors the trend seen with LG Innotek's camera module issues. News of U.S. power grid infrastructure investment and an article about the acquisition of Westinghouse shares also attracted market attention, leading to some rotational trading in power cable infrastructure and nuclear power-related stocks like Gaon Cable.

Uncertainty surrounding the FOMC's interest rate decision led to sluggish market trading. Investors are maintaining a wait-and-see stance, believing that the market atmosphere could change significantly depending on hawkish or dovish outcomes. A tendency to hold cash for additional purchases if rates rise, or to approach cautiously if rates are frozen, resulted in an overall decrease in trading volume.

It was noted that communication equipment stocks surged in the short term due to the 'shortage' issue, but it may be difficult to maintain the upward trend without continuous follow-up issues. There is also a possibility that supply and demand could shift back to large-cap stocks depending on changes in the macroeconomic environment. Therefore, a strategy of responding briefly and decisively to investments in communication equipment stocks is considered effective.

Whether interest rate hikes are already priced in is important; if additional hikes continue, it could place a significant burden on the market. If geopolitical noises such as war persist, bond yields may struggle to fall, and there is a possibility that demand for large-cap stocks could decrease.

Yesterday, SK Hynix's share price briefly rebounded during intraday trading but then pulled back. This intraday price fluctuation is cited as an example of how crucial the FOMC outcome is. It is necessary to adjust investment strategies considering short-term macroeconomic variables after the FOMC results.

It was advised that if a further decline occurs, a strategy of buying at the lower end of the trading range could also be considered.

Although there is a time lag between purchase and cancellation, it is ultimately expected to have a positive impact on enhancing shareholder value.

Even if the FOMC delivers the expected message, the possibility of the market moving in the opposite direction cannot be ruled out. It is crucial to confirm the Fed's stance on interest rate policy and inflation control, as various external factors such as geopolitical risks and oil price variables can complexly affect market reactions. Therefore, it was analyzed that close observation of market movements and flexible responses are necessary.