JPMorgan maintained its optimism on the Korean stock market and raised its KOSPI forecast to 15,000 points from 10,000.
On the 25th, according to the financial investment industry, JPMorgan, in a report released that day, set its KOSPI targets at ▲ 12,500 points for the base case ▲ 15,000 points for the bull case ▲ 8,000 points for the bear case. This is an upward revision from the previous forecasts of ▲ 9,000 points ▲ 10,000 points ▲ 6,000 points, respectively.
JPMorgan said, "Despite continued foreign selling and high volatility, we maintain a bullish outlook on the Korean stock market."
As the backdrop for the upward revision, it cited improved earnings at domestic hardware corporations due to the spread of artificial intelligence (AI). The report predicted that additional profit growth from the growth of AI and the institutional sector of industrials, the asset effect for financials and the potential for net interest margin (NIM) improvement, and higher valuations from corporate governance reform would work in combination.
It also noted, "The scale of profits for technology corporations participating in building AI data centers has reached a meaningful level from a macroeconomic perspective," adding, "This will provide a wealth increase effect not only to corporations and household but also to the government, enabling long-term policy formulation and planning."
JPMorgan said, "Korea remains our most preferred market in Asia," and recommended, "Increase allocations whenever price corrections occur and maintain the maximum level of exposure to the Korean market."