Leading to the running global stock market M·C·N

Since the beginning of the year, global stock markets such as Korea, Japan and the United States have been soaring. Three themes that are emerging more in the’Biden Era’ are mobility, carbon-neutral, and economic normalization. US President Joe Biden is preparing a $1.9 trillion (about 2100 trillion won) economic stimulus package called the’American Rescue Plan’.

On the New York Stock Exchange on the 20th (local time), when President Biden took office, all major indices recorded all-time highs. The Dow Jones Industrial Average jumped 0.83% and the S&P500 jumped 1.39%. The NASDAQ index, centered on technology stocks, soared 1.97%. The KOSPI index also rose 1.49% on the 21st to 3160.84, breaking a record high based on the closing price.

Investments are coming to companies that try to transform themselves to fit the trend of the times. General Motors (GM) is a representative stock that benefits from three themes at once. Earlier this year, the electric truck for delivery was unveiled. On the 19th, it announced that it will cooperate with Microsoft (MS) to develop autonomous vehicles. The automaker is a representative economically sensitive stock, and GM stock price rose 34% this year alone, as it is expected to benefit from economic normalization.

The changes in the Korean market are also dramatic. LG Electronics began to be evaluated as an electronic component company in earnest by establishing a joint venture with Magna, Canada, the world’s top 3 auto parts company. With the launch of E-GMP, an electric vehicle platform, Hyundai and Kia Motors’ stock prices soared in anticipation of consignment manufacturing Apple’s Apple cars. Among the carbon-neutral stocks, Plug Power, a hydrogen-related company listed on the US stock market, surged 84.31% this year. SK Holdings, which owns a stake in Plug Power, recorded a share price increase of nearly 30% this year. Expectations for the normalization of the economy are pushing up shares in aviation, shipping, and distribution-related stocks in the world.

Oh Tae-dong, head of research division at NH Investment & Securities, predicted, “The’Gold Rush’ worth 1,000 trillion won has begun with eco-friendly policies in the US and Europe as well as China.

LG Group, transforming into electricity and green, increased market cap by 26 trillion this year alone

LG Group is transforming into a huge eco-friendly automobile company. In the new era, corporate portfolios are changing rapidly. Last year, the main character was LG Chem, the world’s number one electric vehicle battery. The stock price, which was around 300,000 won at the beginning of last year, exceeded 1 million won at the beginning of this year. Subsequently, LG Electronics took over the baton. At the end of last year, the news of establishing a joint venture with Magna, the world’s top three auto parts company, doubled the stock price in about a month. On the 21st, LG Display joined. LG Display recorded 23,300 won, up 9.65% on the day. The news of strengthening the vehicle display production line was good news. It is evaluated that it has climbed on the theme of mobility and eco-friendly, which is becoming a hot topic in the global stock market.

Hottest mobility market

The global market is enthusiastic about the’green theme’ with a focus on carbon neutrality. It is symbolic that US President Joe Biden, who took office on the 20th (local time), immediately signed an executive order to rejoin the Paris Climate Convention. There is also a growing expectation that the economy will normalize with the addition of vaccine effects and economic stimulus measures.

The focus of these themes is in the mobility sector. The struggle for survival is fierce ahead of the paradigm shift toward eco-friendly vehicles. In this process, the existing automakers and information technology (IT) and software companies have joined together. The market response is positive. In anticipation that Apple will join hands with Hyundai and Kia Motors to launch an Apple car, Hyundai and Kia’s share prices rose 35% and 40%, respectively, this year. On the news that General Motors (GM) and Microsoft (MS) are joining hands for self-driving cars, GM shares jumped nearly 10% in one day on the 19th.

It was even predicted that Tesla’s share price, an existing stronghold, would exceed $1,000. Wall Street asset manager Oppenheimer raised its Tesla target price from $486 to $1036 on the 20th.

The power of carbon neutrality

In the past year, new and renewable energy-related initiatives, which rose with expectations, are expected to benefit substantially from investments in green new deals from each country. Plug power (PLUG) listed on the US stock market surged 84% this year. It sells hydrogen fuel cells and charging facilities for forklifts. In Korea, SK shares, which invested $1.5 billion and bought a 9.9% stake, also jumped.

The popularity of eco-friendly energy stocks is also hot in Asia. Yongwon Electric, the largest wind power generator in Asia, rose 64% this year on the Hong Kong Stock Exchange. Park Yong-dae, a researcher at Mirae Asset Daewoo, said, “For the next five years, 70 to 80 GW of wind and solar energy generation facilities will be installed every year in China alone.” Yonggi Silicon, China’s largest photovoltaic company, rose 17% this year after its share price rose 271% last year. In Korea, Hanwha Solutions, a leading solar energy company, rose 154% last year, and this year’s increase rate reached 23%.

Expectations for economic normalization from vaccine launch

The most important variable to determine the direction of the stock market this year is’vaccines’. This is because the future of the heated stock market can change significantly depending on whether the economy is normalized or not. Since the beginning of the year, economically sensitive stocks have been booming in domestic and overseas stock markets. There are many items that were hit directly by the new coronavirus infection (Corona 19). Shin Seung-jin, a researcher at Samsung Securities, said, “The game changer in the global stock market in 2021 is a vaccine.”

British Petroleum (BP) shares rose 21% compared to the end of last year as oil prices rebounded from negative one year ago. SK Innovation, which manufactures electric vehicle batteries, climbed 44% this year as oil prices rebound and earnings are expected to improve. Aviation stocks, which were hit hard as the sky road was cut off, also started to rebound. ‘Corona victims’, such as movie theaters and food service, also started to recover in the stock market. AMC, the largest theater chain in the United States, surged 40.49% this year.

Reporter Jaeyeon Ko/Beomjin Jeon/Jawon Park [email protected]