Hyundai Development Co. rose to an 11-month high in Seoul trading and paced gains by South Korean builders on expectations the government will soon announce measures to aid the country’s property market.
Hyundai Development rallied 3.9 percent to 25,650 won as of 10:06 a.m. on the Korea Exchange, bound for the highest close since April 2012. The 34-member Kospi Construction Index advanced 1.3 percent, the second-best performer among 19 industry groups in the Kospi index. South Korea announced yesterday it will unveil a stimulus package in April to spur the property market and revive an economy that the government expects to grow 2.3 percent this year, lower than a 3 percent forecast made in December. A supplementary budget and details of the measures to encourage property sales will be released over time, the Finance Ministry said in a statement yesterday.
“Now is the time that expectations for real estate policies could rise more than ever before,” Lee Sang Hun, an analyst at HI Investment & Securities Co., said in a report today. South Korea President Park Geun Hye pledged on her first day in office Feb. 25 to revitalize the economy.
Finance Minister Hyun Oh Seok said on March 22 he would use “all possible policy measures” to boost an economy that has grown less than 1 percent from quarter to quarter for seven periods. The number of housing transactions fell 14 percent to 47,288 in February, the least for that month in at least seven years, according to the land ministry.
GS Engineering & Construction Corp. added 2.4 percent, Hyundai Engineering & Construction Co. rose 1.1 percent, and Daewoo Engineering & Construction Co. climbed 1.8 percent.