"KOSPI and KOSDAQ Close Lower on 'Trump Election Outlook'... Secondary Battery Stocks Plummet"

LG Energy Solution down 7%, Samsung SDI down 6%
Defense and finance stocks related to Trump rise

As the results of the U.S. presidential election count suggested a likely re-election of former President Trump, the Korean stock market closed lower on the 6th, mainly led by secondary battery-related stocks.

The KOSPI and KOSDAQ indices are displayed on the status board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News

On that day, the KOSPI closed at 2,563.51, down 13.37 points (0.52%) from the previous trading day. The index opened up 15.02 points (0.58%) at 2,591.90 but eventually closed lower. Individual investors bought stocks worth 19.6 billion KRW, and institutions purchased 48.6 billion KRW worth, while foreigners sold stocks worth 108.2 billion KRW.

Among the top market capitalization stocks, Shinhan Financial Group (3.32%), KB Financial Group (3.30%), Meritz Financial Group (2.22%), Hana Financial Group (1.98%), Samsung Biologics (1.79%), and SK Hynix (1.35%) rose. Defense stocks such as Hanwha Aerospace (7.04%), LIG Nex1 (6.23%), and Hyundai Rotem (3.11%) notably surged. Conversely, LG Energy Solution (-7.02%), Samsung SDI (-5.98%), LG Chem (-5.12%), POSCO Holdings (-5.01%), Hyundai Motor (-3.95%), Korea Zinc (-2.15%), and Kia (-2.06%) declined.

By sector, machinery (1.56%), telecommunications (1.21%), finance (1.01%), insurance (0.86%), and pharmaceuticals (0.52%) rose. On the other hand, most sectors fell, including chemicals (-3.57%), steel and metals (-3.48%), transportation and warehousing (-2.34%), electrical and electronics (-1.88%), medical precision (-1.77%), and textiles and apparel (-1.75%).

Ji-won Kim, a researcher at KB Securities, explained, "The domestic stock market showed sectoral differentiation in anticipation of Trump's election. Defense stocks, considered beneficiaries of Trump, and financial stocks reflecting rising interest rates showed strong performance, while secondary battery and renewable energy stocks, highlighted as beneficiaries of Harris, experienced significant declines."

The KOSDAQ index recorded 743.31, down 8.50 points (1.13%) from the previous session. The index opened at 757.23, up 5.42 points (0.72%), but lost momentum as the U.S. election count progressed. Foreigners and institutions net sold stocks worth 133.8 billion KRW. Individuals and institutions bought stocks worth 29.8 billion KRW and 41.6 billion KRW respectively, while foreigners net sold 60.8 billion KRW.

Among the top market capitalization stocks, Hugel (9.93%), HPSP (5.60%), PharmaResearch (4.90%), Silicon투 (Silicon Two) (3.18%), Alteogen (2.76%), and Rigachem Bio (1.54%) rose. Most stocks fell, including EcoPro BM (-8.63%), EcoPro (-7.61%), Samchundang Pharm (-3.28%), Rino Industry (-3.20%), JYP Ent. (-2.12%), HLB (-2.01%), Rainbow Robotics (-1.88%), and EO Technics (-1.26%). Hugel, which announced its largest-ever quarterly consolidated earnings in Q3, closed with a nearly 10% increase.