The Great Whale Stock Revived by a Single Word from Trump

Korea Gas Corporation, Hwaseong Valve, Han Sun Engineering, and DK Lock surge
President Trump mentions Alaska natural gas pipeline project

Last June, the 'Great Whale' theme stocks that shook the domestic stock market changed their theme to Alaska natural gas stocks after eight months. Korea Gas Corporation, which plummeted after the Great Whale exploration drilling was judged not to be an economically viable gas field on the 6th of last month, has recovered to the stock price level from three months ago. U.S. President Donald Trump’s statement expressing hope that Korea would participate in the Alaska natural gas pipeline project acted as a catalyst.

According to the financial investment industry on the 6th, Korea Gas Corporation rose 12.8% the previous day. Based on the closing price, it recovered to the 40,000 won level for the first time in about three months since December 3 last year. High Steel, Hwaseong Valve, Han Sun Engineering, POSCO International, and DK Lock also surged simultaneously.

In a joint session of the House and Senate held at the U.S. Capitol in Washington D.C. the previous day, President Trump said, "We are building one of the world's largest natural gas pipelines in Alaska," adding, "Japan, Korea, and other countries want to become our partners by investing trillions of dollars each."

President Trump’s remarks were delivered to the domestic stock market around 10:53 a.m. the previous day, triggering a buying spree in liquefied natural gas (LNG)-related stocks. Korea Gas Corporation’s stock price hovered around 36,000 won but rose to 42,200 won within an hour after Trump’s remarks. Afterwards, profit-taking selling emerged, and the stock closed at 40,100 won. The trading volume of Korea Gas Corporation was 6.77 million shares the previous day, more than ten times the 610,000 shares traded on the 4th.

Hwaseong Valve’s stock price was below 9,000 won but soared to the price limit of 10,950 won within an hour. High Steel showed a similar stock price trend to Hwaseong Valve. Buy orders flooded in from 11 a.m. for an hour, and the stock price surged.

Most of the listed companies that rose on expectations of Alaska natural gas development on that day were the same companies that were part of the Great Whale theme last year. In June last year, President Yoon Suk-yeol announced the possibility of oil and gas reserves of up to 14 billion barrels through an emergency briefing to the nation. Korea Gas Corporation’s stock price nearly doubled. However, doubts about the reliability of Actgeo, a U.S. deep-sea technology evaluation specialist company, arose, and difficulties in securing exploration budgets caused Korea Gas Corporation’s stock price to halve from its peak within six months. The stock price plunged further on the 6th of last month when news came that the project was not economically viable.

The Yeouido securities market noted that since Korea and the U.S. governments are in consultation, there is uncertainty regarding the Alaska project, but if implemented, steel pipe manufacturers and LNG-related companies are expected to benefit. However, they cautioned that due to the rapid rise in stock prices over a short period, volatility has increased, so investors should be careful. A financial investment industry official advised, "Since the U.S. government has a strong will to implement the project, it is feasible. Although some listed companies may benefit from this large-scale project, it is necessary to carefully examine whether they will actually benefit."