Obama-tied stocks gain before his inauguration
With the clock ticking down on Barack Obama’s inauguration as U.S. president, local companies thought to stand to gain from his policies rose sharply yesterday.The firms include those related to alternative energy, hybrid cars, biotechnology and pharmaceuticals.
Pyeongsan, which manufactures parts for wind power generators, led the upturn in alternative energy stocks by rising 5.6 percent. Obama has pledged to invest at least $15 billion in alternative energy.
Similar stocks, such as Yonghyun BM, Hyunjin Materials and Taewoong, also rose 5.2 percent, 4.6 percent and 2.5 percent, respectively.
Stocks related to the development of hybrid cars also rose on the “Obama rally.”
Pilkor Electronics rose 14.6 percent, almost by the daily limit, followed by Nexcon Technology at 13.9 percent and Samwha Electric by 3.6 percent.
Biotech stocks, expected to benefit from stem cell development projects that Obama has promised, were led by Choa Pharm with 6.8 percent. Sansung P&C advanced 4.3 percent, while Easy Bio System and Celltrion rose 3.4 percent and 2.2 percent each.
Pharmaceutical firms such as Hanmi Pham and Choongwae Pharma gained 5.4 percent and 2.5 percent, respectively. Pharmaceutical firms are related to Obama’s pledge to overhaul the U.S. medical system.
But some analysts cautioned against increasing investment in such firms.
“Investors need to approach those companies from a long-term perspective until the pledges of the next U.S. administration become clear,” said Jung Geun-hae, a researcher at Daewoo Securities.
Choi Kwang-hyuk, a Hanwha Securities analyst, said the real rally will only begin after Obama’s policies go into effect.
By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
with the Korea JoongAng Daily
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