[Stock Market Briefing] Nuclear Power Stocks Strong… Doosan Enerbility Up 5.59%, US-Iran Key Variables and AI Benefits in Focus

On the 1st, the first trading day of June, nuclear power-related stocks showed an upward trend, receiving strong market interest. This is because recent geopolitical tensions surrounding the US and Iran have highlighted global energy security issues, bringing the importance of the nuclear power industry back into the spotlight. In addition, expectations of increased power demand driven by the expansion of the artificial intelligence (AI) industry acted as a key factor driving buying sentiment for nuclear power stocks.

Doosan Enerbility Leads, Nuclear Power-Related Stocks Show Strength During the trading session, Doosan Enerbility, considered the flagship nuclear power stock, rose to 111,500 KRW, up 5.59% from the previous trading day. Trading volume exceeded 4.5 million shares, reflecting the market's intense interest. The expansion of domestic and international nuclear power projects and expectations for recent overseas orders, such as those from the Czech Republic, stimulated investor psychology.

Buying interest flowed not only into Doosan Enerbility but across the entire nuclear power ecosystem. Korea Hydro & Nuclear Power Engineering (KHNP Engineering), a key company in nuclear power design, closed at 137,700 KRW, up 2.53%, while Woori Technology, specializing in nuclear power control systems, also rose 3.16%, demonstrating a strong performance. Korea Hydro & Nuclear Power Plant Service (KPS) and Korea Electric Power Industry Development (KEPIC), involved in maintenance and repair businesses, also joined the upward trend.

On the other hand, some stocks recorded mixed performances as profit-taking shares emerged. BHI saw a slight decline, while Orbitech and Woojin Entec also showed weakness.

Energy Security Importance Highlighted Amid US-Iran Tensions The market is closely watching the impact of recent military clashes and tensions surrounding the US and Iran on the energy market. The Middle East is a critical hub for global crude oil supply, and whenever concerns about war have expanded, international oil price volatility has increased.

In fact, during the war phase, concerns over the stability of the crude oil supply chain expanded, and governments around the world emphasized the importance of energy independence and stable power supply. In this process, an analysis suggests that not only eco-friendly energy sources like solar and wind power, but also nuclear power generation—capable of stably producing large-scale electricity—is being re-evaluated as a strategic industry. Following changes in European nuclear power policies after the Russia-Ukraine war, recent instability in the Middle Eastern situation is also having a strong impact on discussions regarding the expansion of nuclear power.

Surge in AI Power Demand… Establishing Itself as a Long-Term Growth Industry The positive outlook for the nuclear power industry is also linked to the development of AI technology. As AI data centers surge, power demand is increasing rapidly, and global big tech companies are actively pursuing nuclear power purchase agreements or investments in Small Modular Reactors (SMRs) to secure stable electricity.

Market experts analyze that the nuclear power industry is establishing itself as a long-term growth industry, moving beyond a short-term theme. This is because three major trends are intertwined: global carbon neutrality policies, the increase in AI power demand, and the strengthening of energy security.

However, future variables still exist. The securities sector predicts that changes in US energy policy, movements to expand nuclear power in Europe, and whether the Middle East situation stabilizes will be the major variables affecting the direction of nuclear power stocks. Although a phase of somewhat eased tensions (ceasefire) is appearing recently between the US and Iran, the evaluation is that uncertainty in the global energy supply chain has not been completely resolved. Accordingly, mid- to long-term investment interest in the nuclear power industry is highly likely to continue for the time being.

[※ This article was written for the purpose of providing investment information, and investment decisions and responsibilities lie with the investor. AI was utilized in the process of writing this article.]