As the cease-fire between the United States and Iran was extended, Korea's wire and cable stocks are broadly higher. The gains appear to reflect expectations that disruptions in raw materials supply will ease along with the geopolitical risk.
As of 9:48 a.m. on the 23rd, in the Korea Exchange main board, Daewon Cable was up 29.97% from the previous trading day at 8,370 won, hitting the daily upper limit.
In addition to Daewon Cable, domestic wire and cable-related stocks are all rising.
At the same time, Gaon Cable was up 23.06% to 221,500 won, KBI Metal was up 21.04% to 3,205 won, and LS Marine Solution was up 16.0% to 39,150 won.
LS Eco Energy (8.50%), Iljin Electric (6.51%), LS (6.20%), and Taihan Cable & Solution (4.63%) were also rising.
The strength in wire and cable stocks appears to stem from expectations of supply chain normalization as tensions ease in the Middle East. The wire and cable sector has a high dependence on imports for key inputs such as copper and naphtha.
Concerns had mounted over supply disruptions and higher logistics costs due to the war's fallout, but as optimism spreads over cease-fire talks between the United States and Iran, buying is concentrating in Korea's wire and cable sector on expectations of reduced cost pressures.