Despite a two-week cease-fire between the United States and Iran, tensions persist, sending construction stocks grouped as "reconstruction theme stocks" plunging in early trading on the 9th.
As of 9:13 a.m. that day on the main bourse, DL E&C was trading at 92,000 won, down 3,200 won (3.36%) from the previous session.
At the same time, GS Engineering & Construction (5.08%), Hyundai Engineering & Construction (4.13%), and Daewoo Engineering & Construction (0.89%) were also weak.
Earlier, construction stocks had surged as expectations for reconstruction orders after the Middle East war came to the fore. The previous day, GS Engineering & Construction hit the upper price limit (the top of the daily limit range), DL E&C jumped 25.93%, and Hyundai Engineering & Construction soared 21.04% at the close.
Hwang Hyun-jung of Korea Investment & Securities Co. said, "Expectations for reconstruction contract awards for facilities damaged in the United States-Iran war are materializing, and demand worldwide for large nuclear power plants and small modular reactors (SMRs) is seen as benefiting domestic builders."
However, with the United States and Iran heightening tensions even after the cease-fire deal, shares were weaker that day. Iran hinted at the possibility of re-blockading the Strait of Hormuz, and the United States warned, "If you break your promise, you will pay a severe price."