[Market Focus] Cement Stocks Rally on Announcement of 'Housing Supply Expansion Plan'

Cement-related stocks, including Hanil Cement, are rallying in the domestic stock market on September 8, drawing attention as theme stocks following the "9·7 Housing Supply Expansion Plan," the first housing supply policy of the Lee Jaemyung administration.

As of 9:33 a.m. on this day, Hanil Cement shares were trading at 20,250 won per share, up 3.58% from the previous session. Hanil Hyundai Cement rose 2.79%, Sampyo Cement climbed 2.45%, and Asia Cement also recorded a gain of over 2%.

This is interpreted as a surge in buying, with cement-related stocks viewed as beneficiaries of the housing supply expansion plan unveiled the previous day. Typically, cement stocks have shown theme-driven rallies whenever the government announces real estate measures.

The government, in a joint announcement with relevant ministries the previous day, unveiled a plan to supply a total of 1.35 million housing units in the Seoul metropolitan area over five years, with 270,000 units to be started each year. The plan includes: ▲Expanding the role of Korea Land and Housing Corporation (LH) and converting non-residential land owned by LH to boost supply in the metropolitan area; ▲Expanding urban housing supply by utilizing idle sites; and ▲Launching "Public Urban Complex Project Season 2."

On the same day, leading construction stocks Hyundai Engineering & Construction and Samsung C&T also posted gains of 2.35% and 0.51%, respectively. In contrast, Samsung E&A showed a decline of over 1%.

In the securities industry, analysts noted that, although construction stocks have recently undergone significant corrections, the new housing supply plan is unlikely to serve as an inflection point for the sector.

In a report released on this day, KB Securities stated, "There is nothing in the current trend of construction stocks to create a turning point," adding, "Since the public sector (LH) is being strongly emphasized as a housing supplier, including the utilization of public idle sites in urban areas, it will be difficult to shift stock market investors' attention to companies with a high proportion of private housing projects."