Early Heat Boosts Summer Stocks, Already 'Oh So Hot'

Daytime Temperatures Reach 30°C from Late April
Record-Breaking Heatwave Forecast for This Summer
Expecting Benefits from Post-COVID Revenge Spending

[Asia Economy Reporter Oh Ju-yeon] As early heat begins with daytime temperatures rising close to 30 degrees Celsius since the end of last month, summer seasonal stocks in the stock market are stirring faster than usual. Especially this summer, forecasts predict a heatwave, and with the 'social distancing' measures due to the novel coronavirus disease (COVID-19) relaxed to 'everyday distancing' since the 6th, companies entering the summer peak season are expected to benefit from 'revenge consumption' as well.

According to the Korea Exchange on the 7th, among the sectors classified as summer seasonal stocks, the stock that rose most sharply from the 29th of last month to 9:20 a.m. on this day was Maniker F&G, a chicken processing company. Maniker F&G's stock price rose 36.42% from 8,210 won to 11,200 won during this period. Maniker's stock price increased from 839 won on the 29th of last month to an intraday high of 1,075 won on this day, surpassing the 1,000 won mark for the first time since October last year. Harim also rose 17.70% from 2,655 won to 3,125 won during the same period.

These chicken-related stocks have traditionally seen significant price increases ahead of the midsummer Boknal days (Chobok, Jungbok, Malbok). This year, in addition to the seasonal summer characteristics, the combined effects of increased household demand for chicken due to COVID-19 and expectations for chicken delivery services are believed to have driven the simultaneous rise.

With forecasts predicting a record-breaking heatwave, stocks of companies producing air conditioners and fans also fluctuated significantly. The U.S. National Oceanic and Atmospheric Administration (NOAA) estimated a 74.4% chance that this year will be the hottest since weather observations began in 1880, and the UK Meteorological Office reported a 50% probability of record-high temperatures this summer. During the recent golden holiday, some regions already experienced daytime highs exceeding 30 degrees Celsius, marking early summer weather. Consequently, air conditioner and fan manufacturers saw premature stock price increases.

Photo unrelated to the article.

Paseco, which produces window-type air conditioners, saw its stock price rise 21.98% from 11,600 won on the 29th of last month to 14,150 won as of 9:20 a.m. on this day. Shinil Electronics and Winix also rose 16.67% and 14.21%, respectively. Winia Dimchae, which produces the air conditioner brand 'Winia' and the kimchi refrigerator brand 'Dimchae,' saw its stock price surge 19.79% from 2,805 won to 3,360 won during this period.

In the distribution sector, companies producing ice cream and other frozen desserts, as well as alcoholic beverages like beer, are attracting attention. Lee So-jung, a researcher at SK Securities, said, "Once the COVID-19 situation calms down, companies for which summer is the peak season will see sales increase significantly compared to the previous year due to revenge consumption in both China and domestically," adding, "As the summer peak season arrives, food and beverage companies producing ice cream and drinks, clothing companies producing swimwear and sportswear, and some cosmetics-related companies, all expected to benefit from revenge consumption, will stand out."

Binggrae, whose ice cream accounts for 43% of its main product sales, saw its stock price rise 5.66% from 63,600 won on the 29th of last month to 67,200 won as of this day, while Lotte Confectionery rose 2.34% from 128,000 won to 131,000 won.

Hite Jinro, with beer and soju sales accounting for 36% and 57% respectively, jumped 7.09% from 32,450 won to 34,750 won. Lotte Chilsung, with carbonated drinks at 31% and alcoholic beverages at 13%, rose 2.75% from 109,000 won to 112,000 won.

This content was produced with the assistance of AI translation services.