Shinsegae I&C and Shinsegae Food Surge Two Days in a Row, Hit Intraday 52-Week High
Chairman Jeong Yong-jin's Meeting with President-Elect Trump Boosts Group Stocks
Pungsan and Pungsan Holdings Also Soar
Chairman Ryu Jin Strengthens on Trump Inauguration Invitation
With the inauguration of U.S. President Donald Trump scheduled for next month, stocks related to Trump's network are showing strong performance. As the year-end market closure approaches with no significant material in the market, attention is focused on news related to Trump, which is reflected in the stock prices of related companies.
According to the Korea Exchange on the 26th, Shinsegae I&C and Shinsegae Food both recorded 52-week highs during trading on the 24th. Shinsegae I&C closed at 15,310 won, up 1,270 won (9.05%) from the previous session. It reached an intraday high of 17,400 won, marking a 52-week high. Shinsegae I&C's stock price has surged sharply, rising from the 8,800 won range on the 17th to over 15,000 won in just five trading days, increasing more than 72% this month. Shinsegae Food also hit a 52-week high of 44,900 won during the day. However, it later turned downward and closed at 38,700 won, down 2.15%. Shinsegae Food's stock price has risen 22.86% this month, including a 23% surge on the 23rd, with the price, which was in the low 30,000 won range, now approaching the 40,000 won level.
In addition, Emart has also risen for three consecutive days recently, regaining the 70,000 won level. This is the first time Emart's stock price has surpassed 70,000 won since March this year.
The news that Chung Yong-jin, chairman of the Shinsegae Group, met with President-elect Trump pushed up the group’s stock prices. Chairman Chung visited Mar-a-Lago Resort in Palm Beach, Florida, U.S., the residence of President-elect Trump, from the 16th to the 21st (local time). Invited by Trump Jr., the eldest son of President-elect Trump, Chung met with Trump Jr., who arranged a meeting with President-elect Trump. It is known that Chairman Chung and Trump Jr. share a close relationship, described as "brotherly." Since President-elect Trump won the U.S. presidential election last month, Chairman Chung is the first among Korean politicians, diplomats, and businesspeople to publicly disclose having met and conversed directly with him.
There are other stocks whose prices rose due to Trump's influence. Pungsan Holdings and Pungsan both showed strong performance on the 24th. Pungsan Holdings rose 4.8%, and Pungsan increased by 2.36%.
It appears that the news of Ryu Jin, chairman of the Pungsan Group, being invited to the U.S. presidential inauguration affected the stock prices. Earlier on the 24th, the Korea Economic Association announced that Chairman Ryu, who serves as the association's president, was invited to the inauguration ceremony of President-elect Donald Trump scheduled for January 20 next year. Chairman Ryu is currently reviewing whether to attend. He is regarded as a representative "U.S. expert" businessman and is known to have close ties with Republican figures such as former U.S. President George W. Bush.
However, investors should be cautious when investing in stocks that surge sharply due to specific issues or themes unrelated to corporate fundamentals such as earnings. Most of these stocks tend to fall sharply once the material or issue disappears. For example, Pungsan's stock price rose as much as 21.22% to the 61,000 won range on the day but closed with a gain of just over 2% due to profit-taking, showing high daily volatility. Shinsegae Food also closed down 13.81% from the 52-week high recorded during the day.
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