[Asia Economy Reporter Eunmo Koo] As news of former Bareunmirae Party leader Ahn Cheol-soo's hint at returning to politics spreads, political theme stocks are stirring.
As of 10:10 a.m. on the 2nd, Ahn's founded company AhnLab surged 16.34% (10,700 KRW) from the previous trading day, trading at 76,200 KRW. Sunny Electronics, classified as an 'Ahn Cheol-soo theme stock' because a company executive is an AhnLab alumnus, also rose 25.19% (970 KRW) to 4,820 KRW. Damul Multimedia (13.26%) also showed double-digit gains.
On the same day, Ahn stated on Facebook, "Now I will return and discuss how to change politics and how South Korea should move toward the future."
Stocks related to Prime Minister Lee Nak-yeon's return to Yeouido are also showing strength. Namseon Aluminum, a representative 'Lee Nak-yeon theme stock,' was trading at 3,365 KRW as of 10:10 a.m., up 4.18% (135 KRW) from the previous day, continuing a four-day consecutive rise. Namseon Aluminum is linked as a related stock because Lee Gye-yeon, former CEO of Samhwan Enterprise, is the prime minister's younger brother.
Seowon (9.01%), classified as a theme stock because its outside director is a university alumnus of former Prime Minister Lee, and E-World (4.68%), included as a theme stock because Chairman Park Sung-soo of E-Land Group graduated from Gwangju Jeil High School, also showed strength. Additionally, Jooyeon Tech (2.01%), Namhwa Industry (1.30%), and Namhwa Construction (0.62%) followed the upward trend.
Stocks related to Justice Minister Choo Mi-ae, whose appointment was approved by President Moon Jae-in on the same day, also rose. Representative 'Choo Mi-ae theme stocks' include Jeryong Electric and Jeryong Industry, located in Seoul's Gwangjin District, her electoral district. Jeryong Electric traded at 6,820 KRW, up 1.34% (90 KRW) from the previous day, marking a four-day consecutive rise. Jeryong Industry rose 0.34%.
On the other hand, theme stocks of Hwang Kyo-ahn, leader of the Liberty Korea Party and a leading opposition presidential candidate, showed a downward trend. Representative 'Hwang Kyo-ahn theme stocks' such as Hwashin Tech (-7.06%) and Kukil Shindong (-2.87%) declined.
A securities industry official pointed out, "The price fluctuations of political theme stocks have no clear relation to corporate performance," adding, "Generally, political theme stocks fluctuate based on unfounded reasons such as academic, regional, or blood ties with prominent politicians, so caution is needed when investing."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
