Samsung E&A shares rose more than 7% on the 7th. Buying appears to be concentrated on expectations of postwar benefits and projections that the company will also benefit from the semiconductor investment cycle.
As of 9:18 a.m. on the day, Samsung E&A was trading on the Korea Exchange at 48,850 won, up 7.01% (3,200 won) from the previous session.
As the trend toward an end to the war between the United States and Iran strengthened, Samsung E&A, a construction stock, climbed on expectations that demand would grow for rebuilding Middle East infrastructure. Samsung E&A is an engineering, procurement and construction (EPC) contractor.
Shin Dae-hyun, an analyst at Kiwoom Securities, said, "With damage occurring from recent attacks by Iran on gas fields, desalination facilities and refineries in Gulf countries, Samsung E&A is expected to benefit from postwar reconstruction thanks to its relationships with Gulf nations and its construction track record."
Also, as Samsung Electronics released preliminary quarterly results at a record level on the day, the company was projected to benefit from the semiconductor investment cycle.
Shin said, "As the global artificial intelligence (AI) investment boom causes a supply shortage in the memory industry, domestic memory companies are resuming investment," adding, "With Samsung Electronics restarting construction of the P4 and P5 plants, revenue in the advanced industry segment is expected to keep rising."