Nuclear power stocks soar on Korea’s winning bid for Czech’s project

Industry Minister Ahn Duk-geun(right) speaks at a press briefing on july 18. On the left is Hwang Joo-ho, CEO of Korea Hydro & Nuclear Power. [Photo by Yonhap]

South Korea’s stock market was boosted Thursday morning following the announcement that the country’s consortium led by Korea Hydro & Nuclear Power (KHNP) has been chosen as the preferred negotiator for the construction of two new nuclear power plants in the Czech Republic.

Shares of KEPCO Engineering & Construction (KEPCO E&S) were trading at 83,500 won ($60.5) as of 11:02 a.m., up 9.01 percent from the previous session.

This surge was echoed across related stocks: KEPCO KPS rose by 5.59 percent, Daewoo Engineering & Construction by 2.87 percent, Doosan Enerbility by 2.12 percent, and Korea Electric Power Corporation (KEPCO) by 0.56 percent.

Notably, KEPCO Plant Service & Engineering (KEPCO Plant) surged by 17.73 percent to 17,660 won.

The companies are considered key players in the nuclear power sector.

In another significant development, SK innovation’s stock price climbed amid reports of a merger with SK Group’s unlisted firm SK E&S.

SK innovation shares rose by 0.33 percent to 120,100 won as of 11:05 a.m.

Earlier in the session, the stock had spiked by 7.18 percent to 128,300 won. The merger is expected to increase the company’s market capitalization from 11.5 trillion won to 17.7 trillion won, potentially boosting its position in the Kospi index from 37th to 22nd.

This anticipation is driving institutional investors to increase their holdings.

On the other hand, shares of tech giants Samsung Electronics and SK hynix continued to decline amid growing fears of potential U.S.-initiated trade regulations.

As of 11:06 a.m., shares of Samsung Electronics fell 1.85 percent to 85,100 won. The stock opened at 83,800 won, down 3.34 percent from the previous day, continuing its downward trend from a 1.14 percent drop the day before.

SK hynix also experienced a decline, dropping by 4.08 percent to 211,500 won.

This follows a 5.36 percent decrease in the previous session, marking two consecutive days of decline for the semiconductor manufacturer.