Kumho Construction and other Honam-based companies saw sharp stock increases following the government's designation of the Gwangju military airport site for the Honam semiconductor mega-project. Kumho Construction closed 13.36% higher at 14,000 won on the 7th, triggering a trading halt on the 8th, while the broader KOSPI index fell 4.91%. The stock surge reflects market expectations for the large-scale semiconductor cluster investment in the southwestern region, despite Samsung Electronics posting record earnings.
Kumho Construction Trading Halted After 13.36% Surge
Kumho Construction closed at 14,000 won on the 7th, up 13.36% from the previous trading day, while the KOSPI index fell 4.91% and the KOSPI construction sector declined 3.90%. The Korea Exchange announced after market close that Kumho Construction's common shares would be suspended from trading on the 8th after meeting the criteria for trading halt due to additional gains while designated as an investment warning stock. This followed a similar one-day trading suspension of its preferred shares due to rapid short-term gains.
The recent surge in Kumho Construction's stock price is attributed to the government's designation of the Gwangju military airport site and southwestern region as a semiconductor mega-project zone. Kumho Construction is a representative construction company based in the Honam region. Trading volume surged from 1.28 million shares to 31.99 million shares on the 30th of last month, the day after the government's mega-cluster designation announcement. The Korea Exchange designated the stock as an overheated short-selling stock on the 2nd and extended the short-selling ban on the 3rd.
A Kumho Construction official stated that despite no significant large-scale orders recently, market expectations following the government's semiconductor project announcement appear to be reflected in the stock price.
Kumho Tire and Kumho Electric Rally on Semiconductor Theme
Other Honam-based companies also showed strength on the semiconductor theme. Kumho Tire's stock price surged to the daily price limit during trading on the 6th as the Gwangju airport site was officially announced as a leading candidate for the Honam semiconductor mega-cluster, expanding interest in the value of its Gwangju factory site.
Kumho Electric was also designated as an investment warning stock after surging 29.96% on the 29th of last month when the government announced the mega-project.
Gwangju Apartment Presale Sentiment Index Rises 32.6 Points in July
The semiconductor-driven momentum is spreading beyond the stock market to the real estate market. The Gwangju and Jeonnam regional apartment presale market, which had been subdued due to unsold inventory concerns, is already showing signs of rebound.
According to the Korea Housing & Urban Research Institute, Gwangju's apartment presale outlook index for July rose 32.6 points from the previous month to 88.2, the largest increase nationwide. Jeonnam, which along with Gwangju serves as a hinterland for the southwestern semiconductor cluster, also rose significantly by 20.0 points to 70.0.
The apartment presale outlook index uses 100 as a baseline, with values above indicating more people view the market positively and values below indicating more negative outlooks. Although still below the 100 baseline, the indices signal a positive turn driven by the major development.
'Hoban Summit Cheomdan 3 District,' which conducted first-priority subscription in June, recorded an average competition ratio of 7.72 to 1 for the 84㎡ exclusive area type. The complex is located in Gwangju's Cheomdan district, home to the Gwangju Institute of Science and Technology, making it a prime location for industry-academia collaboration.
FAQ
What caused Kumho Construction stocks to surge on the 7th?
Kumho Construction stocks rose 13.36% to 14,000 won on the 7th following the government's designation of the Gwangju military airport site for the Honam semiconductor mega-project. The company is a representative construction firm based in the Honam region.
How did Gwangju's apartment market react to the semiconductor project announcement?
Gwangju's apartment presale outlook index for July rose 32.6 points from the previous month to 88.2, the largest increase nationwide. 'Hoban Summit Cheomdan 3 District' recorded an average competition ratio of 7.72 to 1 for 84㎡ units in its June first-priority subscription.
