South Korean Builders Jump After Trump Says Iran Talks Near Final Agreement

South Korean construction stocks rallied in early trading on June 12.

As of 9:30 a.m., GS Engineering & Construction had climbed 2,200 won, or 8.4%, to 28,400 won from the previous session. Other builders also rose, including Samsung C&T Corp., up 9.02%, Hyundai Engineering & Construction Co., up 8.88%, Daewoo Engineering & Construction Co., up 6.85%, and DL E&C Co., up 6.27%.

The gains followed rising expectations that Middle East reconstruction could benefit the sector if fighting between the US and Iran comes to an end. CBS News reported that the two countries may sign a memorandum of understanding, or MOU, or a letter of intent, or LOI, on ending the war early next week.

US President Donald Trump said negotiations with Iran to end the war had reached the final stage of coordinating the documents, with a signing ceremony potentially set for Europe this weekend.

Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com