South Korea’s Equity Benchmark to Reach 4,000 in Next 12 Months: JPMorgan
Seoul, Sep 29 – South Korea’s stock benchmark is expected to reach around 4,000 in the next 12 months, an analyst from JPMorgan Chase said on Monday. The analyst, Mixo Das, head of Korea equity strategy at JPMorgan, cited three reasons to back his assessment, including the coordinated global easing of monetary policies, which began with the United States.
Coordinated Global Easing of Monetary Policies
According to Das, the global easing of monetary policies is expected to boost investor confidence and drive growth in the stock market. He noted that the United States has already started to ease its monetary policies, and other countries are likely to follow suit. This, in turn, will lead to an increase in investor appetite for risk assets, including stocks.
Korea’s Competitiveness in Cutting-Edge Technologies
Das also highlighted Korea’s competitiveness in cutting-edge technologies, such as defense, shipbuilding, and high bandwidth memory used in artificial intelligence (AI) data centers. He noted that these sectors are unlikely to lose their share in the global market, as they are national security-sensitive industries protected by the government against Chinese competition.
Strengthening Returns to Shareholders
However, Das argued that to further boost investor confidence, Korean companies should strengthen their returns to shareholders. He also noted that ongoing government policy initiatives, such as the pending corporate code reform, should take a positive direction. This, he said, will help to increase investor confidence and drive growth in the stock market.
Global Phenomenon
Das expects the growth in the stock market to be a global phenomenon, with investors chasing risky assets and equities. He noted that the coordinated global easing of monetary policies will lead to an increase in investor appetite for risk assets, including stocks. This, in turn, will drive growth in the stock market and boost investor confidence.
Conclusion
In conclusion, the JPMorgan analyst expects South Korea’s stock benchmark to reach around 4,000 in the next 12 months, driven by the coordinated global easing of monetary policies and the country’s competitiveness in cutting-edge technologies. However, he noted that Korean companies should strengthen their returns to shareholders and that ongoing government policy initiatives should take a positive direction to further boost investor confidence.
As an investor, it is essential to stay informed about the latest developments in the stock market and to keep an eye on the key drivers of growth. With the coordinated global easing of monetary policies and Korea’s competitiveness in cutting-edge technologies, the stock market is expected to experience significant growth in the coming months.
Moreover, the growth in the stock market is not limited to South Korea, but is expected to be a global phenomenon. Investors should be prepared to take advantage of the opportunities presented by the growth in the stock market and to navigate the challenges that come with it.
For Indian investors, the growth in the South Korean stock market presents an opportunity to diversify their portfolios and to take advantage of the growth in the global economy. However, it is essential to conduct thorough research and to stay informed about the latest developments in the stock market before making any investment decisions.
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