[Edaily Reporter PARK MIN ] On the 18th, North Korea-related stocks rose across the board on the domestic stock market amid growing expectations that a “U.S.-North Korea summit” between U.S. President Donald Trump and North Korean State Affairs Commission Chairman Kim Jong-un is increasingly likely.
According to MP Doctor, as of 9:16 a.m. today, GOOD PEOPLE CO., LTD.(033340)was trading at 429 won—up 30.00% from the previous trading day—and had hit the daily price limit. #KODI Co.,LTD. is also trading at the daily price limit of 3,510 won, up 30.00%, while Ananti Inc. joined the rally, rising 29.87% to 5,130 won.
IlshinStone(007110)is trading at 725 won, up 26.97%; DAEA TI CO., LTD.(045390) is up 26.47% at 3,345 won; and BusanIndustrial(011390)is up 23.84% at 50,900 won, all showing strong gains.
In addition, J.ESTINA Co.,Ltd(026040)(23.39%), Shinwon(009270)(19.44%), and MONAYONGPYONG(070960)(15.03%) also posted double-digit gains.
The reason North Korea-related stocks performed strongly that day is believed to be due to President Trump’s announcement on the 17th (local time) that he had received a response from Chairman Kim Jong-un regarding the request for U.S.-North Korea talks.
When asked by reporters at the White House that day, “Why hasn’t Chairman Kim responded to the proposal for talks so far?” President Trump retorted, “How do you know he hasn’t responded?”
When reporters then asked, “So did Chairman Kim respond?”, President Trump replied, “Yes, he has.” When asked “What stage are the talks at?”, President Trump answered, “Very positive.”
Generally, when North Korea-related stocks see a decline in North Korea risk due to the resumption of U.S.-North Korea talks, their share prices often rise on the momentum of “potential easing of sanctions against North Korea → resumption of inter-Korean economic cooperation → expectations for future business opportunities for related companies.”
However, some point out that investors should be mindful of “stock price volatility” because the rise is not driven by an immediate improvement in actual earnings, but rather by “expectations that future business opportunities will open up,” which are already factored into the stock prices.
North Korea’s Rodong Sinmun Reports on the “Handshake of the Century” Between North Korea and the U.S. (Seoul=Yonhap News) On June 13, North Korea’s Rodong Sinmun reported on Chairman Kim Jong-un and U.S. President Donald Trump shaking hands and exchanging pleasantries ahead of the North Korea-U.S. summit held on June 12 at the Capella Hotel on Sentosa Island in Singapore. June 13, 2018 [For Use Only in the Republic of Korea. No Redistribution] For Use Only in the Republic of Korea. No Redistribution]
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