No Barriers before the Heated Sentiment

Bullish market was maintained in the last week with the rise of the composite stock exchange index by over 35 points. Both the view that the market requires regulating and the view that enterprises` increase of sales is not specifically confirmed yet can`t influence on the stock market.

The sentiment, “stock price must rise, ” is overwhelming the variables in the market. The major variable might be such sentiment in this week`s market.

▽Heated sentiment = The logic that explained the weak market became the argument supporting the bull market. Previously, foreign investors’ selling stocks was considered to be beyond the buying of individuals and institutional investors. Nowadays, however, that is explained that there are no worries due to institutional investors and individuals backing up the market.

In the Kosdaq market, where they said `its index plunged as only individuals supporting`, came the explanation that `its index is rising as individuals dominate the market`.

When U.S. market was weak in the previous day, they say that ` stock price is rising owing to the differentiation of domestic market from U.S. one, ` and when U.S. market soared, they say that `stock prices rising thanks to the lively global stock markets. `

Every logic and explanation is focused on the rise of stock price.

Invest sentiment became so heated that the index at the end of a month has been higher than that in the beginning of the month for 6 months in a row for the first time since 1990.

▽The market might be bullish this week? = During this week, Fitch Ratings will visit Korea on the 25th, and Korea National Statistical Office (KNSO) will announce the trend of industrial activity in February and the trend of consumer`s price in March on the 28th and 29th. All of these are major variables that could influence on the stock market.

But people prospect that unless they were considerable bad news, the stock market would continue to be strong. On the contrary, a little good news might encourage the market.

Wan-Bae Lee roryrery@donga.com