LIG Nex1 stock soars on possible Cheongung-II exports to Iraq

[Courtesy of LIG Nex1 Co.]

LIG Nex1 Co., a South Korean defense company, saw its shares soar on Thursday morning following reports that it might export its indigenous ballistic missile interceptor system Cheongung-II (M-SAM2) to Iraq.

Shares of LIG Nex1 were trading at 163,300 won ($118) as of 10:25 a.m. on Thursday, up 1.74 percent from the previous session.

Shortly after the opening bell, the stock surged to 169,200 won, up 5.42 percent.

The gain comes after media reports indicated discussions between the Defense Acquisition Program Administration (DAPA) and LIG NEX1 and Iraq on the potential exports of Cheongung-II. The goal is to finalize the deal later this year, according to reports.

Cheongung-II is a medium-range surface-to-air missile (M-SAM) system designed to counter airborne threats such as ballistic missiles and aircraft.

The export value is reportedly at 3.5 trillion won ($2.5 billion).

LIG Nex1 announced that the discussions are underway but details have yet to be agreed upon.

The stocks of LG Chem Ltd. and LG Energy Solution, Ltd., in the meantime, experienced new 52-week lows on Thursday morning after S&P Global Inc. downgraded their credit rating outlooks from stable to negative.

Shares of LG Chem were trading at 359,000 won as of 10:28 a.m., down 3.1 percent from the previous session. LG Energy Solution also saw its stock fall 2.92 percent to 332,000 won.