Stocks Related to Prolonged Monsoon 'In Focus'

Increase in Dehumidifier Sales... Poor Performance of Heatwave-Related Stocks Like Binggwa

On the 2nd, when a heavy rain warning was issued for the central region, the water level of Tancheon Stream in Songpa-gu, Seoul, rose due to the heavy rainfall. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Geum Bo-ryeong] As the monsoon season extends, stocks related to the monsoon are fluctuating. On the other hand, stocks closely related to heatwaves, such as Binggrae, seem to be struggling.

According to the Korea Exchange on the 4th, Winix, a manufacturer and seller of dehumidifiers, was trading at 21,250 KRW at 9:55 AM, up 2.91% (600 KRW) from the previous day. The previous day, it closed the market up 8.12% at 20,650 KRW.

Winix attracted attention as demand for dehumidifiers is expected to increase due to the prolonged monsoon season. According to the global shopping platform Qoo10, dehumidifier sales increased by 45% last month compared to the previous month.

Since heavy rainfall can damage crops, some stocks benefiting from this are also noted. Pesticide and fertilizer-related stocks are representative examples. Dongbang Agro and Kyungnong, specialized pesticide manufacturers, rose 5.56% (360 KRW) and 1.07% (150 KRW) respectively the previous day. On the same day, fertilizer manufacturers Jobi and Namhae Chemical also showed increases of 4.15% and 3.76% respectively. Waste and garbage disposal companies such as Y&Tech (3.61%), Koentec (5.45%), and Inseon ENT (11.35%) also attracted attention by rising compared to the previous day amid expectations of increased demand for waste disposal.

In contrast, stocks closely related to heatwaves showed a downward trend. Binggrae, a manufacturer of frozen desserts, fell 1.31%, and air conditioner and fan manufacturer Paseco dropped 5.52%.

Since outings decrease during the monsoon season, home shopping, which traditionally performs well during this period, also failed to gain much strength. CJ O Shopping and Hyundai Home Shopping fell by 2.26% and 0.83% respectively.

The monsoon is expected to continue for some time, and interest in related stocks is gradually expanding. According to the Korea Meteorological Administration, from the 1st to 9 AM on this day, major rainfall amounts were recorded as follows: Dobong, Seoul 226 mm; Uijeongbu, Gyeonggi 257 mm; Chungju, Chungbuk 400.5 mm; Bonghwa, Gyeongbuk 167.8 mm. Rainfall is forecast to continue in the central region until the 14th. Jeonnam is expected to have rain until the 10th, and Busan, Ulsan, and Gyeongnam are forecasted to have rain until the 8th.