Global investment bank (IB) JPMorgan raised its 12-month base outlook for the KOSPI index to 5,000.

According to the financial investment industry on the 29th, JPMorgan presented 5,000 for the KOSPI index as its base scenario and said 6,000 is also possible in a bullish scenario.

On the 29th, an employee is working in the Hana Bank dealing room in Jung-gu, Seoul as the KOSPI opens higher and rises into the 4,050s, hitting a record high during trading. /Courtesy of Yonhap News

JPMorgan said that even in U.S. dollar terms, the KOSPI index's year-to-date gain of 72% is the world's record high, but it remains discounted from a valuation perspective.

JPMorgan cited as factors that can lift the KOSPI index the fact that Samsung Electronics and SK hynix, the No. 1 and No. 2 by market capitalization, are leading memory chip price increases, and that shareholder return policies, including share buybacks, are improving.

It then picked top preferences including Samsung Electronics, SK hynix, Hanwha Aerospace, Hyundai Motor, Naver, Shinhan Financial Group, Samsung C&T, Samsung Life Insurance, and HD Korea Shipbuilding & Offshore Engineering.

JPMorgan said, "It is necessary to maintain the view that a short-term pullback is an additional buying opportunity," and noted, "A strategy to overweight the KOSPI market centered on semiconductors, financials, holding companies, and selective industrials is valid."

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