Daewoo Engineering & Construction shares were strong in early trading on the 8th. Buying appears to have gathered on expectations from securities firms that the stock has room to rise on nuclear power orders.
As of 9:35 a.m. on the 8th, Daewoo Engineering & Construction was trading at 214,50 won, up 4,100 won (23.63%) from the previous session on the Korea Exchange.
On this day, analysts in the securities industry said Daewoo Engineering & Construction's shares would be re-rated depending on its performance in winning nuclear power orders.
Kim Se-ryeon, an analyst at LS Securities, said, "Daewoo Engineering & Construction is expected to sign a construction contract for the Dukovany nuclear power plant in the Czech Republic," and noted, "Expectations are also building among major nuclear construction companies for Team Korea's potential to win orders for two additional units at the second nuclear power plant project in the Ninh Thuan region of Vietnam."
Daewoo Engineering & Construction is a member of the "Team Korea" consortium led by Korea Electric Power Corporation, and Team Korea has finalized a contract to win orders for units 5 and 6 at the Dukovany nuclear power plant in the Czech Republic.
It was also cited as a share price momentum factor that nuclear power is likely to be selected for the government's investment projects in the United States.
Kim said, "Japan's investment in the United States includes nuclear power and small modular reactor (SMR) projects," and explained, "Expectations that Korea's government will likewise select nuclear power projects for investment in the United States are acting as short-term share price momentum."