Note the KRX300 issue

Note the KRX300 issue.

The cyclical performance of the earnings season continued.

The US stock market plunged last week.

This week (February 5-9), the KOSPI is expected to fluctuate around the 2550s.

However, the US stock market is expected to be a variable for the Korean stock market as the US stock market has fallen by 2% due to concern over rising interest rates on the US last weekend.

The domestic stock market is expected to continue to enjoy cyclical growth amid the earnings season.

There are many things to consider.

The KRX300 index, launched on May 5, and the opening of the PyeongChang Winter Olympics on the 9th.

The impact is also of concern after the Korea and China Economic Ministers' Meeting held on June 2.

On the 4th, the securities industry expects the Kospi band this week from 2530 to 2610.

■ US stock market 'Koryo'

The Dow Jones industrial average fell 2.54 percent on Wednesday, the sixth-largest drop in history.

The opinion that the temporary adjustment and the bull market are signaling the end is tense.

Meanwhile, this week, Hana Financial Investment suggested a 2550-2600 Kospi band.

NH Investment & Securities issued 2530 ~ 2610 and KTB Investment & Securities issued 2530 ~ 2590.

First, the domestic stock market is expected to continue to enjoy cyclical growth amid the peak season.

This week, more than 50 companies, including SK Telecom, Samsung SDS, Hyosung, KT, Net Marble Games, Mando, Shinhan Financial Group and CJ E & M,

So far, 54.7% of companies based on market cap have announced their earnings.

Consensus-based operating profit fell by -8.1% and net profit by 15.2%. Operating profit in the fourth quarter fell by 43.4 trillion won.

China-related issues are also expected to affect the Korean stock market.

Expectations of easing the Korean government's sentiment grew as the meeting of the ministers of both countries was held on February 2.

The Korea-China Economic Ministers' Meeting was suspended at the end of the 14th meeting in May 2016 due to the intensification of the THAAD (High Altitude Missile Defense System) conflict.

PyeongChang should also watch for the momentum of its beneficiaries in the Winter Olympics.

In case of autonomous driving, it is planned to start an autonomous driving test at the PyeongChang Winter Olympic Games and to have a shuttle service to Incheon Airport.

On the 5th, the KRX300 index is showing its first line.

ETFs based on KRX300 will also be listed on the market in March, and the market has been paying attention to whether bio-companies benefiting from the KOSDAQ-150 beneficiary have benefited.

■ Recommendations for improving performance

Domestic brokerage houses are highly recommendable for companies with high expectations for earnings improvement as their earnings season peaked.

KB Securities selected Hana Financial Group, Lotte Chemical, and POSCO as preferred stocks.

All expectations for earnings improvement are suggested by Judas.

First, Hana Financial Group (HFG) is seeing robust growth in key earnings variables such as net interest margin and SG & A.

In addition, an active dividend policy such as interim dividend is positive.

This is because the portion of non-performing assets and loans to large corporations continues to decline, which is unlikely to lead to a sharp rise in credit costs.

Lotte Chemical's share price is expected to rise in the first half of the year despite the fact that earnings will not increase YoY in the first half of the year.

POSCO is expected to post a better-than-expected quarterly earnings in 4Q09.

Shinhan Financial Investment recommended small and mid-cap earnings-improving companies.

Wie-Won is expected to be robust in 4Q04 thanks to an increase in cutting tool export data. It is a sign of Shinhan Investment that it is significantly undervalued compared to global peers at a PER of 13x.

Another recommendation, Otec, is expected to record sales of W194.7bn (up 9.5% YoY) and operating profit of W6.2bn (up 14.3% YoY) in 4Q10 thanks to steady growth in all business segments.

Shinhan Financial Group expects Korean oil refineries to see a surge in profits and an EPS increase of 58.7% YoY due to the full-fledged expansion of the Naphtha cracking facility (NCC).

SK Securities has selected Kumho Petrochemical, AMOREPACIFIC and Hana Financial Group as its recommendations.

AmorePacific's domestic sales growth is recovering, and Hana Financial Group (HFG) is anticipated to enjoy a positive share performance following the release of its strong 4.4Q earnings.

Yuanta Securities selected Hotel Shilla, Cacao, and Hana Financial Group as its preferred stocks. Hotel Silla has increased its value as a mobility platform, including the return of some Chinese tourists and cacao taxis.