SEOUL, July 22 Shares of Daewoo Engineering and
Construction and other South Korean builders shot up
on Tuesday on expectations of government measures aimed at
boosting the property market, traders said.
Daewoo rose as much as 8.6 percent on the day to 10,200 won,
its highest intraday level since early January 2013, lifting the
Seoul stock market's construction sector by as much
as 2.6 percent to 781.51 points at one point.
The finance ministry is due to unveil economic stimulus
measures on Thursday. Finance Minister Choi Kyung-hwan has
promised since his nomination in early June to take steps aimed
at lifting the local property market.
President Park Geun-hye also told a regular cabinet meeting
on Tuesday that the economic stimulus measures should be focused
on reactivating the property market as well as creating more
"The construction sector is performing strongly in
anticipation of the government's (planned) policy announcements
that are expected to favour the real estate market," said Park
Hyung-ryul, an analyst at Daewoo Securities.
Many traders also said key elements of the ministry's
stimulus measures had already been leaked to the market ahead of
the ministry's embargoed release time set for Thursday. The
ministry had provided the details to journalists on Monday under
The construction sector index was last quoted up 2.53
percent at 780.93 points as of 0537 GMT as it was now headed for
its best day since Feb. 17, when the sector jumped 3.98 percent.
GS Engineering & Construction also rose 3.27
percent to 37,850 won.
(Reporting by Choonsik Yoo and Lydia Lim; Editing by Eric