Hyundai Motor Securities predicted on the 28th that calming inflation expectations would increase the likelihood of short-term circulation of high-value-oriented sectors and exaggerated declines. He also noted that among export stocks with high sensitivity to China, the chemical sector, with limited earnings downward revisions, deserves attention.
Jae-sun Lee, a researcher at Hyundai Motor Securities, said, “The calming of inflation expectations raises the possibility of short-term circular sales of high-value-oriented sectors and exaggerated declines that were exposed to discount rate risks. After peaking at the (FOMC) meeting, the Nasdaq 100 has rebounded relatively large compared to the value stocks of the S&P 500,” he said.
Similarly, in Korea, it is expected that short-term circular selling is highly likely, especially in sectors where valuation declines have widened. Media, healthcare, software, and IT home appliances were presented as related industries.
The researcher also cited China’s Manufacturing Purchasing Managers’ Index (PMI) as a macro indicator to pay attention to. Considering that China’s influence in Korea’s exports and global trade is still high, if the manufacturing economy improves, concerns over a sharp earnings downgrade will be lowered.
He said, “In the past experience, relative strength was observed in export stocks within the region where China’s manufacturing PMI index is recovering. “The limited industry is chemicals,” he explained.
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