Shares of builders are bullish riding Iran hope

Shares of builders are bullish riding Iran hope

Construction firms were the top winners on the main stock bourse in early trading this year, data showed Wednesday, as investors cheered growing opportunities in the Iranian market.

The construction segment of the benchmark Korea Composite Stock Price Index advanced 15.47 percent this year through Feb. 5, the bourse operator Korea Exchange said.

Over the cited period, the KOSPI plunged 2.22 percent. Industry watchers said builders gained ground throughout January and early February as the international community lifted blanket sanctions imposed on Iran after the country pledged to freeze its nuclear program, casting a brighter outlook on their overseas performance.

The growth is significant as the overall Korean stock market remained sluggish earlier this year following the fluctuations of the Chinese stock market and global oil prices.

Iran is widely expected to place gas and oil plant orders in the near future, which could benefit some local builders. Iran boasts the world‘s fourth-largest oil reserves.

Pharmaceutical firms also shot up 10.8 percent over the period following the spread of the Zika virus. The virus has been linked to thousands of birth defects in newborn babies such as abnormally small heads and brain damage.

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