With global investment banks (IBs) one after another raising their KOSPI targets, on the 13th Morgan Stanley also set its KOSPI target at 9,500 points. It said 10,000 points would be possible under a bull-case scenario.
In a report released on the 12th (local time), Morgan Stanley said it expects the KOSPI to continue its upward trend on structural growth and reform persistence, and set a year-end KOSPI range of 6,500 to 9,500.
It projected a first-half target of 8,500 this year. Under a bull-case scenario, it predicted 10,000 points could be possible by year-end. In a bear-case scenario, it saw the bottom at 6,000.
Morgan Stanley also said that external uncertainties stemming from the Middle East situation will persist in the second half, but it expects the Korean stock market to show strong resilience before and after such events.
In particular, it explained that if the Iran war continues beyond June, the spillover effects could be quite strong, but preventive policies would serve as a buffer.
It added that while the Korean capital market is seen as cyclical and heavy in physical assets (such as industrials and materials), which has been unfavorable to the KOSPI, multi-year industry cycles are expected in information technology (IT) as well as energy security, defense, reconstruction, autos, and robotics, forming the basis for this outlook.
Meanwhile, Morgan Stanley said in the report that it added SK Square and NC to its focus list.