By Samir Al Khoury,
The Korean KOSPI index recorded 2,812 points yesterday, its highest level since January 24, 2022. This index has risen approximately 23% from the low it recorded on October 31 of last year (2,273 points) until the close in yesterday’s session (2,807). It has also increased by 6% since the beginning of the year.
Recent Korean economic data show that the Korean economy is truly resilient:
-
The Manufacturing Purchasing Managers’ Index (PMI) rose in June, registering a growth of 51.6 points, which is higher than the previous reading (49.4) and is its highest level since May 2022.
-
The GDP index rose on a quarterly basis, registering a growth of 1.3%, which is higher than the previous reading (0.5%).
Additionally, the consumer price index (CPI) on an annual basis in South Korea declined, recording 2.7% in May. This is lower than expectations (2.8%) and the previous reading (2.9%), and it is closer to the rate targeted by the South Korean Central Bank, which stands at 2%. This encourages the central bank to consider reducing interest rates in the next stage.
From a technical standpoint, the outlook appears encouraging for the Korean KOSPI index. A golden cross has formed between the 20-day moving average in gray at 2,716 points and the 50-day moving average in blue at 2,698 points, indicating upward momentum for the KOSPI index.
Moreover, the Relative Strength Index (RSI) recorded approximately 65 points, which is above the 50-point level, indicating positive momentum for the index. The Positive Directional Movement Index (DMI+) records approximately 37 points, compared to the Negative Directional Movement Index (DMI-), which records approximately 18 points. The large gap between these two indicators suggests that purchasing pressures on Korean stocks are strong.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.
Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.
Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.
Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.
Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.
*All trading involves risk.
