Korea’s cosmetics stocks gain ground on expectations for China’s tour demand

South Korea’s cosmetics stocks are gaining momentum amid growing expectations for an influx of Chinese group tourists ahead of China’s week-long National Day holiday that begins later this month.

Shares of Korean cosmetics company Tonymoly Co. were trading 4.72 percent higher at 5,550 won ($4.2) on Monday morning while those of Aekyung Industrial Co. 3.49 percent higher and Kolmar Korea Co. 4.84 percent.

On Kosdaq, shares of Clio Cosmetics Co. soared 3.66 percent to 28,300 won, and VT Cosmetics 1.55 percent.

The upswing comes as investor sentiment towards cosmetics stocks has gained momentum ahead of China’s National Day holiday that spans September 29 to October 6.

“China’s National Day holiday will serve as a barometer of how many Chinese group tourists visit Korea,” said Kim Young-hwan, an analyst at NH Investment & Securities Co.