KB Securities on the 16th introduced stocks whose prices fell after the outbreak of the Middle East war but then recovered to prior levels, as well as stocks that were not rattled by the war. It analyzed that the stocks that recovered after a price drop did experience a shock, but it was brief and did not break the trend.

The closing price appears on the dealing room display board at Woori Bank's head office in Jung-gu, Seoul, in the afternoon on the 15th as the KOSPI closes at 6091.39, up 123.64 points (2.07%) from the previous session's 5967.75. SK hynix shares finish at 1,136,000 won, up 2.99% on the back of a surge in U.S. tech stocks. /Courtesy of News1

KB Securities presented two types of stocks worth watching at a time when the KOSPI index has recovered a significant portion of the war shock.

First are stocks that fell due to the war's aftermath but, like a roly-poly, recovered their prices to prior levels. These included power, securities, and semiconductor sectors, and the names included Hyosung Heavy Industries, LS Electric, Mirae Asset Securities, Samsung Electronics, SK hynix, LEENO Industrial, Wonik IPS, YEST, Doosan Fuel Cell, and People & Technology.

Kim Min-gyu, an analyst at KB Securities, said, "There was damage to stock prices due to the war, but it was short-lived and did not break the trend," adding, "Most of these stocks are also expected to see earnings growth."

Second are stocks whose prices have kept rising without being hit by the war. They include HD Hyundai Energy Solutions, OCI Holdings, SeoJin System, Hanwha Aerospace, APR, Daeduck Electronics, RFHIC, Daejoo Electronic Materials, PSK, L&F, and VITZRO CELL. Defense, IT hardware, and battery materials were the main sectors.

Kim emphasized, "One thing to keep in mind is that the war has not ended, and variables changed by the war, such as oil prices and interest rates, have not yet returned to prewar levels, while only stock prices have returned to prewar levels."

This, the explanation went, could mean excessive front-loading of expectations. Accordingly, it said that for stocks that have recovered to or neared prewar price levels, investors should approach them while checking whether they would face fundamental shocks if the war intensifies again.

On the other hand, for stocks that rose regardless of the war, it can be seen that macro events have little impact on their prices; however, it analyzed that in such cases many move on individual themes, so it is worth remembering that volatility can be high.

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