Kospi Extends Relief Rally on Foreign Buying and Earnings Repricing
The Kospi index is expected to continue its relief rally this week, according to NH Investment & Securities. Analysts predict that the index will move in a 6,200-7,200 range as it tries to extend last week's gains.
Foreign net buying has been driving the market's advance, with investors purchasing cash equities rather than futures after the US Federal Reserve hinted at a potential rate cut. The expectation of lower interest rates has also led to a repricing of profits in the market.
US Treasury yields remain a source of caution for the market, but analysts say that unless an extreme rate shock hits the market, most of the positive factors already in place could continue to power the rally. Analysts are also monitoring ceasefire talks between the US and Iran, which could lead to volatility in the market.