Cement, pesticide stocks benefit from Kompasu

Fears over damage caused by Typhoon Kompasu that struck the Korean Peninsula early yesterday resulted in share price increases for agricultural pesticides and cement.

Investors bought cement stocks in anticipation of repairs to buildings that might have been damaged from the storm.

Ssangyong Cement rose 3.95 percent to 6,050 won ($5.13), while Union went up 2.05 percent to 6,960 won. Hanil Cement rose 1.93 percent to close at 58,100 won, and Asia Cement was up by 0.45 percent to close at 44,900 won. Sungshin Cement rose 0.55 percent to 3,670 won, while Tong Yang Cement ended up 0.24 percent at 2,090 won. All except Tong Yang Cement are listed on the Kospi stock market.

Agricultural damage was estimated to be large from the storm as there were reports that rice paddies and pear, grape and apple farms along the west coast were affected by the strong winds.

Among Kospi-listed agricultural pesticide producers, Sungbo Chemicals rose by 0.18 percent to close at 27,650 won, and Dongbu HiTek rose 4.27 percent to 9,530 won. However, Sesil Corp., a Kosdaq-listed pest control firm, ended down 0.27 percent at 7,310 won.

“Stocks related to the agricultural industry saw a rise because of possible damage from blight and harmful insects that follows after a typhoon or rainy season ends,” said Jung Geun-hae, an analyst with Daewoo Securities. “But investors should not expect much more gains from these stocks as the upward momentum can just be temporary.”

Han Bum-ho with Shinhan Investment Corp. said, “The performance of these companies will depend on the size of the damage.”

By Jung Jae-yoon [jyj222@joongang.co.kr]