On July 20, Morgan Stanley reduced its pessimistic target for the South Korean Composite Stock Price Index (KOSPI) from 6500 points to 6000 points, stating that the significant surge earlier this year has caused panic among many investors, leading to a sense of unease at high levels. Analysts noted in their report, "Leveraged exchange-traded funds (ETFs) have driven the KOSPI and the semiconductor sector higher, but the market is showing signs of trading fatigue." Morgan Stanley maintained its benchmark target for the KOSPI at 9000 points while lowering the index's 3 to 6-month fluctuation range to 6000–9000 points. In terms of sector allocation, the firm upgraded the communication services sector to an overweight rating; it listed the banking sector as a top pick, followed by information technology, industrial manufacturing, and healthcare sectors. Within the industrial manufacturing sector, defense and military are the top picks, followed by shipbuilding, power/nuclear power, and overseas engineering contracting sectors. "From a medium to long-term market perspective, the rotation and diffusion of market trends is an inevitable trend; however, in the short term, unless reforms lead to a re-evaluation of valuations or the industrial manufacturing sector experiences a strong rally, it will be difficult to significantly alter the overall market trend relying solely on trend diffusion."