SEOUL, SOUTH KOREA / ACCESSWIRE / May 20, 2021 / Finance experts at Amsler Wealth Management have today said that South Korean stocks are expected to further advance through the second quarter as expectations of strong first-quarter corporate earnings and economic recovery run high.
The short-selling ban on 200 market heavyweights on the main bourse and 150 companies on the tech-heavy Kosdaq market was lifted on Monday by South Korea’s financial authorities.
According to data compiled by Amsler Wealth Management researchers, the index rebounded and extended gains afterward due to strong economic data both at home and in the United States on Tuesday.
The Korea Composite Stock Price Index (KOSPI) is expected to continue gains next week even after the recent three-session gain that lifted valuation pressure.
Earnings that exceeded expectations in the first quarter and a rosy outlook for second-quarter earnings are set to reduce the valuation pressure on local stocks.
‘The first-quarter earnings report season is almost over, and investor focus has shifted to the second-quarter performance, which seems to be on track at the moment,’ said Stanley Miller, Director of Private Equity at Amsler Wealth Management.
‘The biggest stock risk would be the U.S. tapering issue. However, our view is that it is too early for the Federal Reserve to consider it,’ he added.
In the January-March period, investors have lauded the surprise earnings by top exporters of microchips, petrochemicals, and automobiles.
Home appliance and machinery also had a strong performance, boosted by support for infrastructure spending and new homes in the U.S., one of South Korea’s main trade partners alongside China.
Last month, local exports increased 41.1% on-year, growing at the quickest pace in a decade.
About Amsler Wealth Management
Founded in 2011, Amsler Wealth Management is a global wealth management and corporate financial services company entrusted to manage the investment and financial dealings of clients around the world.
Company: Amsler Wealth Management
Contact: Peter Chi, Chief of Financial Research
Telephone: +82 2 3143 9551
Address: 17F Glass Tower, 534 Teheran-ro, Gangnam-gu, Seoul, South Korea, 06181
SOURCE: Amsler Wealth Management
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