In early trading on the 13th, construction-related stocks fell across the board. Investor sentiment toward construction stocks that had benefited from expectations of reconstruction appears to have weakened on news that the first cease-fire talks between the United States and Iran collapsed.
As of 9:55 a.m. that day, GS Engineering & Construction was trading on the Korea Exchange at 36,050 won, down 1,600 won (4.25%) from the previous session.
At the same time, Hyundai Engineering & Construction was also trading at 173,600 won, down 6,000 won (3.34%) from the previous session. In addition, construction stocks such as DL E&C (2.54%) and Samsung C&T (2.81%) were weak.
This appears to be due to the dampened expectations for reconstruction after the first cease-fire talks between the United States and Iran collapsed.
The United States and Iran held two-day, one-night cease-fire talks in Islamabad, Pakistan, starting on the 11th, but failed to reach an agreement and broke off talks.
On the 12th (local time), U.S. Vice President JD Band held a press conference in Islamabad, Pakistan, and said, "We did not reach an agreement with Iran and will return to the United States without an agreement."
Previously, the securities industry projected that domestic construction companies with sites in the Middle East would likely take on reconstruction projects following the Middle East war, sending construction stocks sharply higher.