'Blue wave' weighs on chip stocks, but investors cheer as other shares surge

The KOSPI and KOSDAQ markets are fluctuating in tandem with the U.S. midterm election vote counting on Wednesday. The two major indices opened higher but turned lower due to foreign investor outflows before reversing back to gains in the latter half of trading. Stocks identified as beneficiaries of the Democratic Party's landslide victory, particularly secondary batteries and eco-friendly stocks, are firm.

As of 2:45 p.m., KOSPI stood at 5,663.06, up 14.27 points (0.25%) from the previous trading session. After opening with a rise of over 2%, KOSPI fell to the 5,400 level before recovering its losses and reclaiming the 5,660 line.

In the KOSPI market, foreign investors made net sales of 2.6781 trillion won, but retail investors and institutional investors drove a rebound with net purchases of 1.0233 trillion won and 641.1 billion won, respectively.

KOSDAQ recovered to the 700th line at 710.10, up 5.71 points (0.81%) from the previous trading session. KOSDAQ, which had fallen below the 700th line during intraday trading, rebounded as both foreign and institutional investors turned to net buying.

Following the U.S. midterm election results in which the Democratic Party reclaimed both the Senate and the House for the first time in 20 years, beneficiary stocks of the 'Blue Wave' (Democratic Party victory) are strong. Hanwha Solutions, considered an eco-friendly stock, surged over 16%, while HD Hyundai Energy Solution rose in the 9% range and SK Eternix climbed in the 6% range. Daemyung Energy rose over 27%, and Doosan Fuel Cell also surged over 12%.

The secondary battery sector is also firm. Samsung SDI and EcoPro BM rose over 10%, while POSCO Future M climbed in the 9% range.

In contrast, Samsung Electronics is weak by over 1%, and SK hynix is near flat with a slight decline.

Lee Kyung-min, a researcher at Daishin Securities, said, "The market is concerned about the possibility of investment delays due to strengthened regulations on AI data centers," explaining that in particular, the lead of Democratic Party candidates Ino Hosa in Texas and Acton in Ohio, who pledged a moratorium on data center construction, and the Democratic Party's advantage in two seats on the Georgia Public Service Commission (PSC) are factors increasing the possibility of strengthened electricity rate and permitting regulations.

The researcher said, "With the Democratic Party's landslide victory in the U.S. midterm elections, investment sentiment across the entire AI value chain has contracted, while eco-friendly and secondary battery sectors have shown strength on expectations of policy benefits, deepening sector-specific differentiation."