"Up 20% in a Week": Individual Investors Flock to This Stock on Ceasefire News

Top Performers in Weekly and Monthly Returns

"Korean Firms Well-Positioned for Middle East Energy Infrastructure Reconstruction"

As news of a ceasefire in the U.S.-Iran war emerged, "construction" themed ETFs, which are expected to play a key role in the reconstruction of the Middle East, are attracting attention.

According to ETF Check on April 13, as of April 10, excluding leveraged and inverse products, the ETF with the highest one-week return was "TIGER 200 Construction." It posted a one-week return of 21.70%, attracting 8 billion won in capital over the week. On April 9 alone, 2.5 billion won flowed in, reflecting investors’ optimism in anticipation of the end of the war.

The ETF with the second-highest one-week return was also construction-themed: "KODEX Construction." It recorded a one-week return of 20.47% and attracted 16.5 billion won in capital. Over the past month, these two ETFs swapped rankings but maintained first and second place in returns.

Examining the portfolios of these two ETFs, Hyundai Engineering & Construction had the highest weighting in both. However, there are differences in the specific holdings and their proportions. TIGER 200 Construction's top holdings were Hyundai Engineering & Construction (27.96%), SAMSUNG E&A (17.47%), Samsung C&T (12.93%), and Daewoo E&C (11.69%). In comparison, KODEX Construction had a slightly lower weighting in Hyundai Engineering & Construction (24.96%), but a higher weighting in SAMSUNG E&A (19.25%). Daewoo E&C (12.97%) and Korea Electric Power Technology (8.94%) followed in terms of holdings.

In addition, nuclear power ETFs that include construction stocks also ranked high in returns. The TIGER Korea Nuclear Power ETF posted a 21.67% one-month return, ranking third. This ETF has high weightings in Hyundai Engineering & Construction (28.33%) and Daewoo E&C (14.23%).

Investor interest is seen as being driven by the analysis that Korean construction companies will benefit from reconstruction projects if the Middle East war comes to an end. The securities industry is optimistic about the potential for Korean companies to participate in rebuilding efforts, especially since Korean firms were the original contractors for many of the damaged facilities in locations such as Mina Abdullah in Kuwait, Ruwais in the United Arab Emirates (UAE), and Ras Laffan in Qatar.

Lee Eunsang, an analyst at NH Investment & Securities, said, "We judge that Korean construction companies have the greatest advantage in participating in the reconstruction of energy facilities after the end of the war," adding, "Most of the major companies with plant divisions, including Hyundai Engineering & Construction, Daewoo E&C, GS E&C, SAMSUNG E&A, and DL E&C, have prior construction experience."

Park Youngdo, an analyst at Daol Investment & Securities, said, "While the potential scale of Iran's reconstruction is expected to be significant, the lifting of economic sanctions is a prerequisite, and those who provide reconstruction funds are most likely to win the orders." He added, "The restoration of Gulf energy infrastructure is a more realistic path. With strong financing capabilities and a proven track record among Korean construction companies, they are expected to benefit most quickly."

However, Park added, "It is still a ceasefire, not a complete end to the war, and there is insufficient information to gauge the scale of the restoration, so it is difficult to predict the eventual size of the recovery projects."

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