Morgan Stanley sets this year's KOSPI Composite Index upper target at 9,500, says 10,000 is possible in a bull market

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[Financial News] Global investment bank Morgan Stanley has set this year's upper target for the KOSPI Composite Index at 9,500, saying that 10,000 is also achievable in a bull market scenario.
\r\nMorgan Stanley said in a report released on the 12th local time that it expects the KOSPI Composite Index to trade in a range of 6,500 to 9,500 this year. It forecast a first-half target of 8,500.
It also said the index could reach 10,000 by the end of the year in a bull market scenario. In a bear market scenario, it set the lower bound at 6,000.
The report said, "The KOSPI Composite Index is expected to continue its upward trend through structural growth and ongoing reforms," adding, "Although uncertainties such as Middle East risks will remain in the second half, the KOSPI Composite Index will show resilience."
It added, "If the Middle East war continues beyond June, the impact will be unavoidable, but preemptive policies will serve as a buffer."
Morgan Stanley cited a continuing industrial cycle as the main reason for the KOSPI Composite Index's gains. It noted that Korea's capital market has long been disadvantaged by its sensitivity to the business cycle and its heavy reliance on physical assets. However, it said industrial cycles in Information Technology (IT), energy security, defense industry, reconstruction, automobile industry and Robot are likely to continue for years.
It also highlighted plans to revise the Financial Investment Services and Capital Markets Act in the second half of the year and to advance the Stock Price Suppression Prevention Act.
Morgan Stanley also said it added SK Square and NCSoft to its list of preferred stocks.
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jisseo@fnnews.com Seo Min-ji Reporter