"Harris Leads in Presidential Debate... Harris Trade Expected to Appear"

Secondary Battery, Renewable Energy, and Automotive Sectors Expected to Stand Out

U.S. Democratic presidential candidate Vice President Kamala Harris dominated former President Donald Trump, the Republican candidate, in the presidential debate, leading to forecasts that a Harris trade may emerge for the time being. There is also an opinion that if Harris becomes president, she will continue the Biden administration's policies, which could highlight sectors such as secondary batteries, renewable energy, and automobiles.

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On the 12th, Jo Yeon-ju, a researcher at NH Investment & Securities, stated in a report, "Trump focused solely on defense against Harris's attacks, making the debate favorable to Harris," and analyzed, "The fact that popular American singer Taylor Swift officially declared her support for Harris on social media after the debate could further increase the cohesion of the Democratic support base."

Earlier, on the 11th (local time), the U.S. presidential debate between Trump and Harris took place. The two candidates began the debate focusing on the economy and inflation, topics of high interest to American voters, and Trump initially gained a good position with favorable topics. However, Harris led attacks on abortion and immigration issues, which were advantageous to Trump, forcing Trump to remain on the defensive. Local media evaluated that Trump easily collapsed under Harris's provocations.

Accordingly, researcher Jo predicted that momentum from the presidential debate could lead to the emergence of a Harris trade for the time being. Assuming Harris is elected and current policies are maintained, sectors such as renewable energy, security, construction and machinery, utilities, and communications are expected to benefit.

He diagnosed that Harris's election would have a more positive impact on the domestic stock market. In particular, sectors such as secondary batteries, renewable energy, and automobiles, which were leading stocks in the early period of the Biden administration, are likely to be highlighted.

The sector most sensitive to the approval ratings of U.S. presidential candidates is the secondary battery sector. The domestic secondary battery sector showed strength on news of Harris's lead in approval ratings but has fluctuated recently with news of Trump's rising approval ratings.

He stated, "Harris will continue the Biden administration's policies, so the Harris trade will feature a re-emphasis on the effects of major Biden administration policies such as the Inflation Reduction Act (IRA), the CHIPS Act, and the Infrastructure Investment and Jobs Act (IIJA)," adding, "In particular, the maintenance of the IRA electric vehicle subsidy program will be positive for secondary battery and automobile stocks."