April 26, 2024

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[THE INVESTOR] South Korea’s main stock price index is likely to breach the 2,300-point level in the second half of this year, brokerages said on March 27.

Citing a recovery in the global economy, NH Investment & Securities said in a research note that it has raised its 2017 target for the benchmark KOSPI to 2,350 from an earlier 2,250.

“After walking sideways for years, KOSPI is on pace to breach the previous record. Large-cap issues are likely to lead KOSPI’s upturn down the road,” said Oh Tae-dong.

The optimum valuation of the main stock market could be upgraded further, as the world economy is projected to pick up and continue its expansion in the coming months, despite a possible correction in the short term, he added.

Daishin Securities echoed the view, saying increasing corporate income will likely power KOSPI‘s rise in the second half. According to Daishin Securities, the combined operating income of companies listed on the main stock market is estimated to reach 150 trillion won this year with their bottom line topping 100 trillion won.

The on-year growth rate of the operating profit is predicted to reach 25.1 percent this year, the highest level since the 57.1 percent recorded in 2010.

Other experts forecast KOSPI to continue its high growth next month, bolstered by the easing of global risks such as US rate hikes and growing expectations for a recovery in domestic demand.

By Alex Lee and newswires (alexlee@heraldcorp.com)