Domestic Stock Market Rises 1% as Biden's Election Gains Momentum... Kospi Nears '2400'

[Asia Economy Reporter Oh Ju-yeon] As Joe Biden, the Democratic candidate, is likely to win the U.S. presidential election, the domestic stock market rose by more than 1%. This is interpreted as a result of the uncertainty before the election being resolved, raising expectations for the next government. In the domestic stock market, Biden beneficiary stocks surged, reflecting this sentiment.

According to the Korea Exchange on the 5th, as of 11:05 a.m., the KOSPI recorded 2,394.26, up 1.57% from the previous trading day, approaching the 2,400 level.

Among the top market capitalization stocks, Samsung Electronics (1.71%), SK Hynix (2.52%), and Samsung Biologics (6.28%) rose, while NAVER (-1.84%) and Kakao (-0.70%) fell.

By supply and demand, individuals sold stocks worth 560.2 billion KRW, while foreigners and institutions bought stocks worth 408.3 billion KRW and 153.8 billion KRW, respectively.

The KOSDAQ index rose 1.50% from the previous trading day to 839.37.

Among the top market capitalization stocks, Celltrion Healthcare (0.33%), Seegene (4.86%), and HL Biotech (1.27%) rose, while Alteogen (-3.74%) and Celltrion Pharm (-0.17%) fell.

In the KOSDAQ market, individuals net sold stocks worth 161.6 billion KRW, while foreigners and institutions net bought stocks worth 128.4 billion KRW and 46.3 billion KRW, respectively.

Meanwhile, investors focused on Biden beneficiary stocks in the market that day.

Hanwha Solutions surged 10.42% during the day to 47,150 KRW. It had fallen sharply by 11.85% to 41,300 KRW on the previous day due to news that Trump was leading but recovered much of the loss. CS Wind (7.90%), Sinsung ENG (7.61%), and OCI (6.03%) also rose.

On the other hand, stocks related to inter-Korean cooperation and rare earth elements, which are noted in case of intensified U.S.-China disputes, fell sharply. Ananti, which rose 10.85% during the previous day, fell 7.87% that day, and Union and Union Materials fell sharply by 19% and 17%, respectively. These were stocks that surged 27-29% during the previous day.

Seo Sang-young, a researcher at Kiwoom Securities, evaluated, "The possibility of Biden's victory is expected to improve trade-related measures, which is positive for Korea, which is highly dependent on exports."

However, he diagnosed that the increased uncertainty surrounding the election in the short term is a burden.

Researcher Seo said, "Although the possibility of Biden's victory has increased, Trump showed a tendency for intensified friction by filing lawsuits to stop vote counting," adding, "Along with this, the rapid increase in new COVID-19 cases in the U.S. and the slowdown in U.S. economic indicators also increase the possibility of economic contraction, which is also a burden."

This content was produced with the assistance of AI translation services.