Morgan Stanley lowered the pessimistic scenario target for the Korea Composite Stock Price Index from 6,500 points to 6000 points, saying that the sharp rise in the index earlier this year made many investors feel fearful and extremely cold. Analysts, including Yoon Joon-suk, wrote in the research report: “Leveraged exchange-traded funds are driving the Korea Composite Index and the chip sector to continue to rise, and the market has shown trading exhaustion.” Morgan Stanley maintained the benchmark target of 9,000 points for the Korea Composite Index, while lowering the index's 3-6 month fluctuation range to 6000-9000 points. In terms of industry allocation, the bank raised the communications services sector to an overrated rating; the banking sector was ranked as the first choice, followed by the information technology, industrial manufacturing, and healthcare sectors. Within the industrial manufacturing sector, defense and military industry are the first choice, followed by shipyards, power generation/nuclear power, and overseas engineering contracting sectors. “From a medium- to long-term market perspective, the rotating spread of market conditions is the general trend; however, in the short term, unless reforms lead to a revaluation or a strong rise in the industrial manufacturing sector, it is difficult to significantly reverse the general market trend by simply spreading the market.”

Morgan Stanley lowered the pessimistic scenario target for the Korea Composite Stock Price Index from 6,500 points to 6000 points, saying that the sharp rise in the index earlier this year made many investors feel fearful and extremely cold. Analysts, including Yoon Joon-suk, wrote in the research report: “Leveraged exchange-traded funds are driving the Korea Composite Index and the chip sector to continue to rise, and the market has shown trading exhaustion.” Morgan Stanley maintained the benchmark target of 9,000 points for the Korea Composite Index, while lowering the index's 3-6 month fluctuation range to 6000-9000 points. In terms of industry allocation, the bank raised the communications services sector to an overrated rating; the banking sector was ranked as the first choice, followed by the information technology, industrial manufacturing, and healthcare sectors. Within the industrial manufacturing sector, defense and military industry are the first choice, followed by shipyards, power generation/nuclear power, and overseas engineering contracting sectors. “From a medium- to long-term market perspective, the rotating spread of market conditions is the general trend; however, in the short term, unless reforms lead to a revaluation or a strong rise in the industrial manufacturing sector, it is difficult to significantly reverse the general market trend by simply spreading the market.”