Electrical and Cable Stocks Slide Together Amid KOSPI and KOSDAQ Joint Plunge

Weakness in U.S. semiconductor stocks and caution surrounding China's semiconductor industry are dampening investor sentiment across the domestic stock market, leading to a broad decline in electrical and cable stocks as well. Profit-taking sell orders are concentrated in stocks that had sustained strength on expectations of power demand from artificial intelligence (AI) data centers and power grid investments.

On the 28th, both KOSPI and KOSDAQ tumbled in the domestic market, showing lackluster performance. Sell-side circuit breakers were triggered consecutively in both markets from early in the session, and the KOSPI's decline exceeded 8%, prompting a circuit breaker that halted trading for 20 minutes starting at 10:13:43 AM.

The market attributes the pressure on investor sentiment to the decline in U.S. semiconductor stocks, debates over whether the semiconductor industry cycle has peaked, and the push for an IPO by Chinese memory chipmaker ChangXin Memory Technologies (CXMT). As the index decline was driven by sharp drops in large-cap semiconductor stocks, selling by foreign investors and institutions spread to electrical, electronics, and manufacturing sectors, also taking a toll on power equipment and cable stocks.

Major Cable and Power Equipment Stock Movements

Among cable stocks, Gaon Cable posted the most notable decline. Gaon Cable is trading at 153,800 won, down 28,800 won (-15.77%) from the previous trading day. It opened at 174,500 won and rose to 180,000 won during the session before selling pressure intensified and pushed it down to 150,100 won. Trading volume was 346,012 shares.

Korea Electric Cable is trading at 25,400 won, down 3,100 won (-10.88%) from the previous session. It opened at 27,100 won, which marked the intraday high, while the low was recorded at 25,050 won, with a trading volume of 1,077,786 shares. Iljin Electric is also trading at 55,900 won, down 6,600 won (-10.56%) from the previous trading day. It rose to 61,900 won intraday before retreating to 55,000 won, with a trading volume of 237,225 shares.

• Power equipment stocks were also unable to escape the weakness.
• LS ELECTRIC: Down 22,100 won from the previous trading day to 177,900 won (-11.05%)
• Sanil Electric: Down 10.34% to 149,200 won
• HD Hyundai Electric: Down 10.41% to 714,000 won
• Hyosung Heavy Industries: Down 268,000 won from the previous trading day to 2,357,000 won (-10.21%, intraday low of 2,315,000 won)

Risk-averse selling is interpreted to have emerged across power equipment stocks, which had risen on expectations of power grid investments and expanding transformer demand.

Daewon Cable the Sole Gainer... What Are the Future Market Variables?

Meanwhile, Daewon Cable relatively held its ground, maintaining an upward trend as the only riser among electrical and cable stocks. Daewon Cable is trading at 14,140 won, up 160 won (+1.14%) from the previous trading day. It opened at 13,070 won, dropped to 12,890 won intraday, and then rebounded to 14,400 won. Trading volume was 10,349,572 shares, the most active among cable stocks. However, Daewon Cable Preferred fell 400 won from the previous session to 10,110 won (-3.81%). Given that the movements of common and preferred shares diverged, the rise in Daewon Cable common stock can be attributed to individual supply and demand dynamics.

Elsewhere, Sundoh Electric traded at 3,810 won, down 8.19%, while Kwang Myung Electric and Kumho Electric remained unchanged with no trades formed.

Electrical and cable stocks have garnered market attention on expectations of rising power consumption from AI data centers, North American power grid replacement, and expanding demand for extra-high-voltage cables and transformers. However, on days like today when KOSPI and KOSDAQ plunge simultaneously, changes in overall market liquidity and investor sentiment may be reflected in stock prices more significantly than expectations for individual industry growth.

Going forward, it is necessary to first monitor whether KOSPI and KOSDAQ can recover their losses, foreign investor flows, and movements in U.S. semiconductor stocks. Within the electrical and cable sector, key variables to watch include whether Daewon Cable's trading volume is sustained and whether bargain-hunting buy orders flow into heavily declining stocks such as Gaon Cable, Korea Electric Cable, and Iljin Electric.

[※ This article was written based on publicly disclosed market prices and does not recommend buying or selling any specific stock. Stock prices may fluctuate during the session, so please verify the latest disclosures and market prices before actual trading. This article was produced with AI assistance.]