Korean stock market expected to gain momentum after presidential election
Optimism is growing that the Korean stock market will gain upward momentum as political uncertainty eases following Tuesday's presidential election, according to securities analysts on Tuesday. They said so-called honeymoon rallies have often followed past presidential elections, and similar expectations are emerging this time, with potential boosts from a supplementary budget and economic stimulus measures. Some highlighted the food and beverage sector — which is projected to post stronger earnings — along with financial and brokerage stocks as areas worth watching. Heo Jae-hwan, an analyst at Eugene Investment & Securities, cited statistics showing that in only one of the last three presidential elections did the stock market decline a month after the vote. He noted that historically, market conditions following elections have generally been favorable. "In the past nine presidential elections, the KOSPI rose by around 3 to 4 percent one month after the election and by 14 to 16 percent over the following year," Heo said. "Out of the nine cases, the KOSPI declined one month, three mon
