Last weekend, US employment indicators slowed significantly … the US stock market closed higher
Domestic investment sentiment is likely to improve… corporate performance needs attention
The domestic stock market is expected to continue its upward trend this week. Photo = Yonhap News
[오피니언뉴스=김지은 기자] Last week, the domestic stock market continued its upward trend.
At the Federal Open Market Committee (FOMC) in May, when global investor attention was focused, US Federal Reserve (Fed) Chairman Jerome Powell dismissed the possibility of an interest rate hike that the market was worried about, and industries that posted a good performance. , such as banking stocks, rose As the trend continued, general investment sentiment improved.
Accordingly, the KOSPI index closed trading at 2676.63, up 0.76% over the past week, continuing its upward trend for two consecutive weeks.
It was also positive in terms of supply and demand. Foreign investors continued their buying trend over the past week, a net purchase of about 700 billion won, and institutional investors also managed to buy about 460 billion won. Individual investors net sales of approximately 1.2 trillion won.
The domestic stock market is expected to continue its upward trend this week.
The US employment indicator released last weekend was significantly below expectations, suggesting that the jobs market is slowing.
According to the US Department of Labor, non-farm payrolls in the US increased by 175,000 in April compared to the previous month, which was a significant slowdown compared to experts’ expectations (an increase of 240,000) and the previous month (an increase of 303,000).
In particular, the weekly wage increase rate was 0.2% compared to the previous month, which was below market expectations (an increase of 0.3%). US Federal Reserve Chairman Jerome Powell previously mentioned at the FOMC meeting in May that interest rates could be cut if the job market weakens.
As the indicators on this day were well below expectations, expectations for an interest rate cut also spread, and the three main indexes ended trading with gains in the 1% range.
This is expected to have a positive impact on the domestic stock market early in the week.
However, as the high interest rate market is not expected to change quickly, some advice is to be careful when choosing an industry.
Kim Dae-jun, a researcher at Korea Investment & Securities, emphasized, “It is difficult to achieve great results in terms of the index for now, so selective investment in a few industries that can grow is necessary.”
He said, “The stocks to watch from the point of view of the market’s reaction are large export stocks,” and it is predicted, “Large export stocks that can fully enjoy the recovery in foreign demand will be an instrument for improving earnings rather than small and medium domestic. demand for stocks with a high proportion of domestic sales.” Related industries include IT and automotive, including semiconductors and hardware.
The explanation is that these are industries that are likely to increase sales thanks to the recovery in demand in the United States, which has emerged as Korea’s No. 1 exporting country, and positive signs of better momentum also through changes in earnings management ratios.
As earnings announcements roll in this week, there is continued advice that companies’ performance needs attention.
Na Jeong-hwan, a researcher at NH Investment & Securities, said, “Investors will focus on whether the performance momentum can be maintained in the next quarter rather than on the company’s good performance in the first quarter.” pay attention to the industry,” he explained.
He said, “In the case of Samsung Electronics, the recent stock price gains have been slow compared to the improving performance outlook,” and “While expectations are not high for stocks that’ n linked to value at the moment, we should pay attention again if the stock price falls further.”
Meanwhile, NH Investment & Securities presented the 2600-2720 range as the expected KOSPI band for this week.
The domestic stock market will be closed on the 6th. On this day, China’s Caixin service PMI for April will be published.
The Reserve Bank of Australia (RBA) monetary policy meeting is scheduled for the 7th.
The Bank of England (BOE) monetary policy meeting is scheduled for the 9th, and on this day, China’s export and import indicators for April will be published.
On the 10th, the Michigan Consumer Confidence Index for May will be released.
Performance announcements from domestic and foreign companies are also summarized.
Walt Disney’s earnings are due on the 7th, Uber and Airbnb are due on the 8th, and Constellation Energy is due on the 9th. Korea Zinc will announce its performance on the 7th, Celltrion and SK Telecom on the 8th, and Kakao, Samsung Fire & Marine Insurance, and LG on the 9th. On the 10th, Korean Air, NCSoft, Hite Jinro, and Netmarble will announce their performance.
Reporter Ji-eun Kimjekim@opinionnew.com
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