Construction stocks are gaining in the domestic stock market after the United States and Iran agreed to a cease-fire. The easing of the long-standing geopolitical risk in the Middle East and expectations of benefits from large-scale infrastructure and plant reconstruction projects ahead appear to be reflected.
As of 9:26 a.m. on the 15th in the Korea Exchange, Samsung E&A is trading at 51,200 won, up 3,600 won (7.56%) from the previous trading day. After surging more than 10% at the opening, the gain has narrowed slightly.
DL E&C is also showing strength, trading at 783,000 won, up 44,000 won (5.95%) from the previous day. At the same time, HL D&I (5.71%), HanmiGlobal (5.48%), Daewoo Engineering & Construction (5.26%), and Kumho E&C (5.19%) are also up more than 5%.
The broad early-session rise in construction stocks appears to be due to U.S. President Donald Trump saying on Truth Social on the afternoon of the 14th (local time) that the agreement with Iran had been finalized.
Kazem Gharibabadi, Iran's Vice Minister of Foreign Affairs, also mentioned an immediate and permanent end to hostilities on all fronts, including Lebanon, sharply easing tensions in the Middle East.
With risks in the Middle East—long the traditional stronghold for orders by Korean construction companies—easing, investor sentiment appears to be concentrating on construction stocks.
The official memorandum of understanding (MOU) signing ceremony for the cease-fire between the United States and Iran is scheduled to be held in Switzerland on the 19th.