South Korean construction companies and resort operators rose in Seoul trading today after the 2018 Winter Olympics were awarded to Pyeongchang.
Hyundai Engineering & Construction Co. rose 2.7 percent, GS Engineering & Construction Corp. gained 2.3 percent and Samsung C&T Corp. climbed 4.8 percent after Pyeongchang, in the Taebaek mountains about 130 kilometers (80 miles) east of Seoul, beat Munich and France’s Annecy to host the Games.
Kangwon Land, an operator of casinos, hotels, a ski resort and golf course, rallied as much as 9.5 percent before ending 2 percent lower at 28,500 won at the 3 p.m. close of trading in Seoul.
“Contracts for infrastructure and stadiums will come, which should be positive for builders whose domestic orders have been a bit lackluster,” Han Jong Hyo, an analyst with Shinyoung Securities Co., said by phone today.
Hosting the 2018 Winter Olympics will directly add 21.1 trillion won ($19.8 billion) to the South Korean economy, Hyundai Research Institute said in a report published this week. Benefits from increased tourism and raising the profile of the nation and its corporate brands will indirectly add a further 43.8 trillion won to the economy in the 10 years after the Olympics, according to the report.
Hyundai Cement Co., which has operations including a ski resort, surged by the daily limit of 15 percent. Ssangyong Cement Industrial Co. jumped 12 percent before closing down 8.6 percent.
Heerim Architects & Planners, which won a contract to design a stadium for the 2014 Incheon Asian Games, closed 8.3 percent lower after earlier gaining 7.3 percent, while Freedom Travel Co., which is building a resort in Pyeongchang, retreated 1.9 percent after jumping 10 percent initially.