Construction Stocks Rise on U.S. Investment and Nuclear Power Project Hopes

Construction stocks showed strong performance early on September 8, buoyed by expectations surrounding U.S. investment projects. As opportunities for domestic companies to participate in gas combined cycle power generation and nuclear power construction emerge, investor sentiment has improved.

According to the Korea Exchange, as of 10:09 a.m., Daewoo Engineering & Construction saw its shares rise by 1,330 won (7.22%) to 19,740 won. Hyundai Engineering & Construction increased by 3.86% to 131,800 won, GS Engineering & Construction rose by 2.13% to 35,950 won, and DL E&C gained 1.79% to 79,400 won. Samsung C&T and IPARK Hyundai Industrial Development also saw increases of 1.30% and 0.65%, respectively.

The surge in construction stocks is attributed to expectations of expanded investment in power infrastructure from the U.S. The Texas Encinada gas combined cycle power project, identified as the first major U.S. investment initiative, is moving forward, with nuclear power construction being discussed as a subsequent project. This has heightened expectations for domestic construction firms to secure overseas power plant contracts.

Additionally, optimism surrounding the nuclear power market is contributing to this trend. Analysts in the securities industry noted that the domestic nuclear and gas power infrastructure sectors are entering a new phase, driven by actual demand for expansion and increased export opportunities. The rapid growth in electricity demand, particularly due to the expansion of AI data centers, is expected to benefit both nuclear and gas power sectors in the long term. Last month, shares related to nuclear power, including Hyundai Engineering & Construction and Korea Electric Power Technology, also experienced gains due to forecasts of expanded investment opportunities in the domestic and international nuclear sectors.

Furthermore, expectations are rising that the government’s 2027 budget will include increased investments in public housing, roads, power grids, and water infrastructure, leading to a broader buying trend among major construction firms.