Following the Democratic Party's decisive victory in the U.S. midterm elections, analysts are optimistic about a potential rebound in the KOSPI index. The shift in congressional power is expected to alleviate some political uncertainties, although concerns remain regarding a slowdown in AI investments and increased regulations on data centers.
According to analyses from five major brokerage research centers, a limited 'W' recovery pattern is anticipated, with projections for the KOSPI ranging between 4800 and 8000 by the end of this year and into the first half of 2027.
Industries likely to benefit from Democratic policies include green sectors such as solar energy, secondary batteries, and energy storage systems (ESS). Meanwhile, the AI, semiconductor, and defense sectors are expected to maintain long-term growth due to ongoing U.S. efforts to counter China.
Brokerages like Daishin, Shinhan, and LS Securities are focusing on the potential for market recovery following the resolution of election uncertainties and policy changes. LS Securities forecasts the KOSPI could reach as high as 6500 by year-end and 7000 to 7500 in the first half of next year.
In contrast, Hana and Kiwoom Securities caution against short-term volatility due to concerns over AI investment profitability and the burden of long-term U.S. interest rates. They suggest that the sustainability of any rebound will depend on the alleviation of AI industry anxieties and geopolitical risks.
In related reports, iM Securities highlights the growing demand for data center operations driven by the expansion of AI into physical applications. Delays in building terrestrial power grids and challenges in securing energy are making space data centers an emerging alternative.
The initial investment for space data centers is estimated at around $98.3 billion for 1GW, double that of terrestrial centers at $48.7 billion. However, falling launch costs and advancements in satellite lightweighting and mass production are expected to narrow this cost gap.
Companies like Tesla and SpaceX aim to secure annual solar manufacturing capacity of 100GW in the U.S., anticipating increased demand for space solar cells and non-Chinese polysilicon and electrode materials.
OCI Holdings is expected to benefit from the rising demand for non-Chinese polysilicon in the U.S., with a new target stock price set at 300,000 won. Shipments to new U.S. customers are projected to begin in 2027.
Additionally, Daegu Electronics Materials has set a new target stock price of 135,000 won, while Nano Materials has raised its target to 115,000 won. By 2035, SpaceX's annual demand for silver paste is estimated at 1.8 trillion won, with TCO target demand reaching 1 trillion won.
After the market closed on November 4, several key disclosures were made:
- Hanjin Kal announced a change in its largest shareholder from Cho Won-tae and 18 others (20.58%) to Hoban Construction and three others (20.69%).
- SK disclosed plans to buy out all remaining common shares of its unlisted subsidiary, SK Eco Plant, totaling 16,434,638 shares at 88,000 won each, amounting to 1.4462 trillion won.
- Daewoo Technology participated in a third-party allocation capital increase by JoongAng Ilbo, acquiring 38 million new shares for 190 billion won.
- DL announced that its subsidiary, DL Chemical, signed a binding MOU with Glenwood Private Equity regarding the sale of Cariflex.
As of November 3, fund trends showed:
- Domestic equity funds: 68 billion won
- Overseas equity funds: -1.1 billion won
Today's schedule includes U.S. productivity and unit labor costs for the third quarter, along with earnings reports from Kakao, LG Chem, EcoPro, EcoPro BM, EcoPro Materials, L&F, KT&G, and Netmarble.
* This article has been translated by AI.
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