NH Investment & Securities forecasts KOSPI range of 5800-6700 next week

NH Investment & Securities predicts that the KOSPI index will trade between 5800 and 6700 next week. Currently, the KOSPI is undervalued relative to earnings but overvalued relative to capital. Na Jeong-hwan, a researcher at NH Investment & Securities, recommended a strategy of maintaining portfolios centered on leading stocks with proven performance in sectors like semiconductors, power equipment, nuclear power, and defense, while selectively adding stocks with confirmed earnings from industries showing significant improvement in return on equity.

The outcome of next week's U.S. Federal Reserve Federal Open Market Committee (FOMC) meeting and Federal Reserve Chair Powell's remarks were cited as key variables for the KOSPI market. With international oil prices maintaining high levels between $80 and $100 per barrel, the focus was on how the Fed evaluates the price risks associated with oil prices.

Factors cited as potential drivers for the KOSPI market next week include 'earnings momentum,' 'expectations for a U.S.-Iran ceasefire,' and 'falling oil prices.' Geopolitical risks and inflation concerns were analyzed as downside factors.

The KOSPI closed at 6475.81 the previous day, marking a record high for three consecutive trading sessions.