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[Shinyoung Securities Soyeon Park] Stock outlook for the last week of July

The July FOMC is scheduled for Thursday morning. A 75bp hike is certain, but it is important to note that the recent high inflation theory is emerging.

Therefore, this week's Weekly has dealt with supply and demand issues.

1) U.S. credit loans have plummeted to the level of October 2020, 2) the volume burden is decreasing as many companies are withdrawing from IPOs, and 3) the Bitcoin-Ethereum ratio is also recovering.

Although there are few signs that it has hit the bottom, an overly defensive perspective is not advantageous as the inflation and interest rate issues that plagued the market in the first half are receding.

In weekly this week, we selected short-covering stocks with high short selling to market cap ratios and upwards EPS. We hope this helps you with your investment. thank you

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▲ Last week's trend: KOSPI rose 2.7% to close to 2,400. Large-cap stocks and growth stocks rebounded evenly on resumption of foreign buying. 3-year KTBs rose by 2bp to 3.22%, won/dollar exchange rate fell by 13 won to 1,313 won

▲ Industry/item: Defense stocks such as Hyundai Rotem (+27.1%), Hanwha Aerospace (+15.4%), and LIG Nex1 (+10.5%) were outstanding, while E-Mart (+10.8%) was strong on expectations of easing the closure. Securities stocks such as Kiwoom Securities (+14.0%) and Korea Financial Group (+10.4%) also strengthened on the index rebound

▲ Weekend Overseas Trends: The New York Stock Exchange fell. Snap (-39%) was weak due to earnings shock along with Meta (-7.6%) and Alphabet (-5.6%). However, expectations for an inflation peak due to a drop in WTI. Housing/building materials strong, including PPG Industries (+3.9%) and DR Horton (+2.1%). As DXY continues to weaken, the NDF won/dollar exchange rate fell 3 won from Friday to 1,310.3 won.

- Odessaan shelling within one day of agreement to export grain to Russia: International wheat prices plunged 6% on Friday but are expected to rebound on Monday

▲ Comprehensive Judgment: The peak of the interest rate hike panic reaction, the prospect of a relief rally. Credit loans decreased to the KRW17 trillion level, reducing the burden of urgent sales. A recovery is also expected amid stabilization of raw material prices. Value Choi, Growth Trading Buy Phase

- Schedule of this week: 26th (Tuesday) Microsoft, Alphabet / 27th (Wednesday) FOMC, Meta / 28th (Thursday) Apple, Amazon, etc.