Korean construction stocks rise on nearing US investment deal
Korean construction stocks have been gaining ground on expectations that nuclear and other power plant projects could be among the first to get underway as part of a $350 billion U.S. investment plan, boosting hopes for new construction orders. The first project under the plan could take shape as early as this week, with Korea and the United States nearing an agreement. At a ruling…
Korean construction stocks have been on the rise as investors anticipate the potential start of several power plant projects under a $350 billion U.S. investment plan. The optimism surrounding the sector is evident in the strong performance of the KRX Construction Index, which surged 9.44% from September 1 to 11, outpacing the broader KOSPI index's 1.32% gain during the same period.
The first project under the plan could begin as early as this week, with negotiations between Korea and the United States nearing completion. At a recent ruling party-government meeting, the Ministry of Trade, Industry and Resources highlighted a gas-fired combined-cycle power plant in Encinal, Texas, as a possible first project under the agreement.
In addition to the Texas project, the Wall Street Journal recently reported that Seoul and Washington are also close to agreeing on over $100 billion in U.S. energy investments. These investments are expected to include eight nuclear power plants and natural gas projects, further bolstering hopes for a surge in construction orders within the Korean construction industry.
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- Korean construction stocks rise on nearing US investment deal koreatimes.co.kr
