SEOUL, July 22 (Reuters) - 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 jobs.
“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 embargo.
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 Meijer)