[Edaily Reporter KIM YOON-JEONG ] The KOSPI and KOSDAQ both closed higher on the 4th after experiencing extreme volatility amid the ongoing U.S. midterm election vote count. The KOSPI broke through the 5,800 mark early in the session but was pushed down to the 5,400 level by heavy selling from foreign investors before turning higher. The KOSDAQ also fell below the 700 mark during the session but rebounded to close above it. As the likelihood of a Democratic victory in the U.S. elections came into focus, policy uncertainty surrounding artificial intelligence (AI)-related stocks increased, while eco-friendly and rechargeable battery-related stocks showed strength on expectations of policy benefits.

◇ KOSPI Plunges from 5,800 to 5,400 Before Rebounding… Foreign Investors Net Sell 2.5 Trillion
According to MP Doctor, the KOSPI index closed at 5,683.80, up 35.01 points (0.62%) from the previous trading day. The KOSDAQ index also closed at 714.95, up 10.56 points (1.50%).
Both major indices experienced sharp swings throughout the session. The KOSPI opened at 5,786.13, up 137.34 points (2.43%) from the previous trading day, and rose as high as 5,828.13 early in the session. This is believed to be due to the strong performance of major domestic semiconductor stocks, driven by bargain-hunting in U.S. semiconductor stocks on the New York Stock Exchange overnight.
However, the indices later turned downward as foreign investor sentiment shifted sharply. The KOSPI fell as low as 5,421.72 during the session, plummeting 406.41 points from its intraday high. The index, which had risen more than 3% early in the session, at one point fell more than 4%, resulting in a daily price swing of over 7 percentage points between the high and low. It later recovered its losses and closed the day in positive territory.
Foreign investors continued to sell heavily until the market closed. On that day, foreign investors recorded net sales of 2.502 trillion won on the stock market. Although they had made net purchases of 65.3 billion won early in the session, they shifted to net selling in the afternoon and continued to expand their net selling volume until the market closed. In contrast, retail investors and institutions recorded net purchases of 1.1442 trillion won and 1.0138 trillion won, respectively.
Top-market-cap stocks showed mixed performance. SamsungElectronics(005930)closed at 218,000 won, down 0.68% from the previous trading day. SK hynix(000660)also closed down 0.14% at 1,396,000 won. Both stocks rose by 2% and 3%, respectively, early in the session but later turned lower, with losses widening to 4–5% at one point during the session before narrowing.
In addition, Samsung Life Insurance(032830)(-0.57%) and SAMSUNG C&T CORPORATION(028260)(-0.16%) were among the decliners. SKSQUARE(402340)closed flat. On the other hand, LG Energy Solution(373220)(5.03%), SAMSUNG BIOLOGICS(207940)(2.96%), HyundaiMotor(005380)(2.16%), SamsungElectroMechanics(009150)(0.90%), and KB Financial Group(105560)(0.07%) were among the gainers.
◇ KOSDAQ also recovered after breaking below the 700 mark… the first time in three months it has fallen below that level
The KOSDAQ also fluctuated sharply during the session, hovering around the 700-point mark. The index opened at 715.74, up 11.35 points (1.61%) from the previous trading day, and rose as high as 718.34 early in the session. However, it later turned lower, falling below the 700 mark and briefly dropping to 683.66. It subsequently managed to rebound, closing higher at 714.95.
This marks the first time in about three months—since July 31—that the KOSDAQ index has dipped below the 700-point mark during intraday trading. On that day, the KOSDAQ fell as low as 663.25 during the session before closing at 719.76. From August 3 through the previous day, all intraday lows had remained above the 700-point mark.
After closing at 644.78 on July 30, the KOSDAQ rose to 854.47 on August 10 and reached an intraday high of 919.92 on October 6. However, volatility increased, and less than a month later, the index fell below the 700-point mark again during intraday trading.
In the KOSDAQ market, institutional investors made net purchases of 62.8 billion won, while retail investors and foreign investors made net sales of 5.1 billion won and 900 million won, respectively.
Among the top market-cap stocks, ECOPRO BM CO., LTD.(247540)(10.96%), ECOPRO CO., LTD(086520)(9.54%), SIMMTECH Co., Ltd.(222800)(9.53%), and JUSUNG ENGINEERING Co.,Ltd.(036930)(7.74%) showed strong gains. In contrast, HLB INC.(028300)(-17.69%), Alteogen Inc.(196170)(-4.45%), and Rainbow Robotics(277810)(-0.29%) fell.
◇ Concerns Over AI Regulations Amid U.S. ‘Blue Wave’… Solar and Rechargeable Battery Stocks Soar
Concerns over AI data center regulations following the U.S. midterm election vote count were cited as a factor driving market volatility that day. While the possibility of a Democratic victory was anticipated by the market, analysts noted that investor sentiment toward AI was shaken as Democratic candidates took the lead not only in key battleground states but also in traditionally Republican strongholds during the vote count.
Lee Kyung-min, an analyst at DaishinSecurities, noted that as the likelihood of a Democratic victory became apparent during the U.S. midterm election vote count, concerns over stricter regulations on AI data centers and a slowdown in construction spread. In particular, he observed that fears that restrictions on data center construction and rising electricity costs could slow the pace of AI investment have dampened investor sentiment in the semiconductor sector.
Kim Seok-hwan, an analyst at MIRAE ASSET SECURITIES, also noted that as Democratic victories in key battleground states were confirmed, the issue of AI data center regulations was emerging as a major election issue. In the U.S., local opposition is growing over power consumption and environmental concerns stemming from the expansion of AI data centers, as well as tax benefits for large corporations. Analyst Kim predicted that the greater the likelihood of a Democratic election victory, the more volatile investor sentiment toward AI-related stocks could become in the short term.
Conversely, eco-friendly and rechargeable battery-related stocks showed strength on expectations of policy benefits stemming from a potential Democratic election victory.
Among solar energy-related stocks, HANWHA SOLUTIONS(009830)closed at 28,000 won, surging 18.64% from the previous trading day. HD HYUNDAI ENERGY SOLUTIONS CO.,LTD.(322000)(12.47%) and OCI Holdings Company Ltd.(010060)(10.38%) also posted double-digit gains.
Stocks related to secondary batteries also rose in tandem. L&F(066970)(12.84%), SAMSUNG SDI CO.,LTD.(006400)(11.57%), ECOPRO BM CO., LTD.(247540)(10.96%), and POSCO FUTURE M(003670)(10.81%) all rose by more than 10%, while ECOPRO CO., LTD(086520)(9.54%) and ECOPRO MATERIALS(450080)(7.94%) also closed higher.
The analyst noted that while investor sentiment across the entire AI value chain weakened as the likelihood of a Democratic victory came into focus, expectations of policy benefits drove gains in the eco-friendly and secondary battery sectors, leading to a deepening divergence among sectors.