The KOSPI has dropped more than 10% over the past five trading days, yet transportation and food stocks have shown relative resilience. This stability is attributed to expectations of improved earnings and the defensive nature of these sectors amid increased market volatility. Future fluctuations in exchange rates, international oil prices, and geopolitical tensions in the Middle East are expected to influence the stock prices of these sectors.
According to financial information provider FnGuide, the KOSPI's weekly return as of the previous day was -16.17%. The consensus for third-quarter operating profit among KOSPI-listed companies is projected at 266.6574 trillion won, a 225% increase compared to the same period last year. However, growing external uncertainties and concerns surrounding the artificial intelligence (AI) industry have heightened market volatility.
While most sectors have experienced declines over the past five trading days, transportation & logistics and food & tobacco stocks have performed relatively well, rising by 3.10% and 2.46%, respectively.
The transportation & logistics sector has seen both stock price increases and upward revisions in earnings expectations. The consensus for third-quarter operating profit in this sector has been adjusted upward by 2.98% over the past week. Transportation & logistics is the only sector where both stock prices and operating profit consensus have risen simultaneously.
Within the transportation & logistics sector, five out of 14 constituent stocks have increased in value. Notable gains include Jeju Air (28.87%), HMM (11.54%), Pan Ocean (10.78%), and Jin Air (5.69%). In particular, Jeju Air's third-quarter operating profit consensus has been revised upward by 318% in just one week.
The airline sector's performance is attributed to expectations of improved earnings, particularly among low-cost carriers (LCCs). Hanwha Investment & Securities noted that Jeju Air is expected to benefit from revenue growth driven by its route portfolio and cost efficiency strategies. The airline industry is anticipated to gain from stable oil prices and exchange rates, making it an attractive sector from a supply-demand perspective.
Shipping stocks have also benefited from expectations of rising freight rates due to geopolitical tensions in the Middle East. Daishin Securities commented on HMM, stating that the prolonged geopolitical bottleneck is positively impacting freight rates. They believe that supply chain disruptions caused by the Middle East situation are unlikely to be resolved easily by 2026, suggesting continued benefits for container shipping companies.
The food & tobacco sector has emerged as a defensive play amid increasing domestic and international uncertainties. This sector is less affected by concerns surrounding the AI industry and market volatility, maintaining stable demand and relatively low earnings volatility in response to economic changes. Additionally, food companies are expected to benefit from reduced raw material import costs due to a decline in the won-dollar exchange rate.
Korea Investment & Securities remarked on KT&G, stating that in a highly uncertain market, its stable defensive role is appealing. They emphasized the need to focus on the company's medium- to long-term overseas business plans, especially with an upcoming announcement regarding a new shareholder return policy.
According to financial information provider FnGuide, the KOSPI's weekly return as of the previous day was -16.17%. The consensus for third-quarter operating profit among KOSPI-listed companies is projected at 266.6574 trillion won, a 225% increase compared to the same period last year. However, growing external uncertainties and concerns surrounding the artificial intelligence (AI) industry have heightened market volatility.
While most sectors have experienced declines over the past five trading days, transportation & logistics and food & tobacco stocks have performed relatively well, rising by 3.10% and 2.46%, respectively.
The transportation & logistics sector has seen both stock price increases and upward revisions in earnings expectations. The consensus for third-quarter operating profit in this sector has been adjusted upward by 2.98% over the past week. Transportation & logistics is the only sector where both stock prices and operating profit consensus have risen simultaneously.
Within the transportation & logistics sector, five out of 14 constituent stocks have increased in value. Notable gains include Jeju Air (28.87%), HMM (11.54%), Pan Ocean (10.78%), and Jin Air (5.69%). In particular, Jeju Air's third-quarter operating profit consensus has been revised upward by 318% in just one week.
The airline sector's performance is attributed to expectations of improved earnings, particularly among low-cost carriers (LCCs). Hanwha Investment & Securities noted that Jeju Air is expected to benefit from revenue growth driven by its route portfolio and cost efficiency strategies. The airline industry is anticipated to gain from stable oil prices and exchange rates, making it an attractive sector from a supply-demand perspective.
Shipping stocks have also benefited from expectations of rising freight rates due to geopolitical tensions in the Middle East. Daishin Securities commented on HMM, stating that the prolonged geopolitical bottleneck is positively impacting freight rates. They believe that supply chain disruptions caused by the Middle East situation are unlikely to be resolved easily by 2026, suggesting continued benefits for container shipping companies.
The food & tobacco sector has emerged as a defensive play amid increasing domestic and international uncertainties. This sector is less affected by concerns surrounding the AI industry and market volatility, maintaining stable demand and relatively low earnings volatility in response to economic changes. Additionally, food companies are expected to benefit from reduced raw material import costs due to a decline in the won-dollar exchange rate.
Korea Investment & Securities remarked on KT&G, stating that in a highly uncertain market, its stable defensive role is appealing. They emphasized the need to focus on the company's medium- to long-term overseas business plans, especially with an upcoming announcement regarding a new shareholder return policy.
* This article has been translated by AI.
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