The KOSPI index fell over 3% on October 22, retreating to the 5,500 range, but a forecast suggests it could rise to as high as 9,300 next year.
Hanwha Investment & Securities released its '2027 Annual Outlook' on the same day, projecting a target KOSPI index of 8,500, with an expected range between 6,000 and 9,300.
Quarterly target indices are set at around 7,600 for the fourth quarter of this year, 7,700 for the first quarter of next year, and 7,550 for the second quarter. The third and fourth quarters of next year are projected at approximately 7,900 and 8,500, respectively.
Researcher Ha Jeong-gwon noted, "The recent return on equity (ROE) reflected in stock prices is about 11%, significantly lower than the actual 12-month confirmed ROE of 16% and the 12-month forward ROE of 26%." He added, "When the ROE reflected in stock prices has been below the actual performance-based ROE since 2005, the average return on the KOSPI one year later has reached 28%."
He recommended buying stocks if the index falls below 6,000, stating that concerns stemming from China's Changxin Memory are merely noise. He anticipates that most of the index's gains will occur in the fourth quarter of this year and the first quarter of next year, driven by long-term supply agreements and negotiations on high-bandwidth memory (HBM) prices.
Sector-wise, attention should be focused on semiconductors and IT hardware until the first quarter of 2027, and from the second quarter of 2027, on banks, steel, transportation, and utilities as interest rate pressures ease.
* This article has been translated by AI.
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