Aerospace, shipbuilding stocks surge thanks to Trump victory

Elon Musk, Tesla CEO, enthusiastically dancing at a Trump rally to show support during the presidential campaign. (AFP/Yonhap)

Following Donald Trump’s victory in the U.S. presidential election, aerospace-related stocks surged in the South Korean stock market on Thursday.

Shares in Asia Pacific Satellite Inc. (AP Satellite) traded at 13,250 won ($9.45) on the Kosdaq as of 9:23 a.m., which was a 15.22 percent increase from the previous day. AP Satellite is a manufacturer of satellite communication terminals and components, and involved in projects for multi-purpose utility satellites, next-generation medium-sized satellites, and geostationary satellites.

Hanwha Systems Co., Kencoa Aerospace Corp., Hanwha Corp., and Hanwha Aerospace Co. also saw gains, with stocks rising 7.20 percent, 6.70 percent, 3.20 percent, and 3.35 percent respectively.

The rally in aerospace stocks reflects optimism that Trump’s administration, with strong support from Elon Musk, who heads Space Exploration Technologies Corp. (SpaceX), could help relax regulations in the U.S. space industry. Musk had actively supported Trump during campaign rallies.

In addition to aerospace stocks, Korean shipbuilders also saw notable gains.

HD Hyundai Heavy Industries Co. shares traded at 202,000 won as of 9:30 a.m., up 11.54 percent. The company entered the U.S. ship maintenance, repair, and overhaul (MRO) market in July 2024 by signing an agreement with the U.S. Navy’s Naval Supply Systems Command.

Hanwha Ocean Co. climbed 10.25 percent to 30,650 won, reflecting its growing marine defense and MRO presence following its acquisition of Philly Shipyard in Philadelphia in June 2024.

HD Hyundai Mipo Co., HJ Shipbuilding & Construction Co., Samsung Heavy Industries Co., and HD Korea Shipbuilding & Offshore Engineering Co. also saw strong gains, with respective increases of 7.91 percent, 7.53 percent, 6.45 percent, and 5.49 percent.

Trump expressed interest in Korean support for U.S. shipbuilding during a phone call with President Yoon Suk Yeol earlier on Thursday, according to the Korean Presidential Office.

Kolmar Holdings Co. also had a strong start on Thursday, rising more than 13 percent on news that U.S. activist fund Dalton Investments had acquired a stake in the company.

Kolmar Holdings was trading at 8,160 won on the Kospi as of 9:26 a.m., up 13.49 percent. Regulatory filings showed on Wednesday that Dalton held a 5.02 percent stake in Kolmar Holdings as of October 30th, 2024, fueling market speculation about possible shareholder return initiatives. The fund has previously engaged in shareholder activism at Hyundai Home Shopping Network Corp. and Samyung Trading Co.

Dalton said its stake in Kolmar Holdings was for general investment purposes.

In contrast, cell imaging company Tomocube Inc. saw its share price fall nearly 23 percent below its initial public offering (IPO) price of 16,000 won on its Kosdaq debut.

Tomocube was trading at 12,260 won as of 9:43 a.m., down 22.38 percent from its IPO price. Tomocube specializes in holotomography technology, which enables high-resolution, real-time imaging of living cells.

The IPO was priced at the high end of expectations following strong institutional demand, with the public subscription ratio reaching 967:1 and deposits totaling 160 billion won.

For its part, The Born Korea Co. led by celebrity chef Paik Jong-won saw its shares rise 1.95 percent on its second day of trading on Thursday.