Reconstruction Stocks Stir Ahead of First US-Russia-Ukraine Trilateral Meeting in Abu Dhabi

Yonhap News Agency

With news emerging of a trilateral meeting between the United States, Russia, and Ukraine aimed at ending the Russia-Ukraine war, stocks related to Ukraine's reconstruction are showing strong performance in the domestic stock market. As specific negotiation dates and locations have been made public, moving beyond mere expectations, selective buying is flowing into stocks with strong actual ties to reconstruction projects.

On the 23rd (local time), Ukrainian President Volodymyr Zelensky officially announced at the World Economic Forum (WEF) in Davos, Switzerland, “A trilateral meeting between Ukraine, the United States, and Russia is scheduled to take place in Abu Dhabi, United Arab Emirates (UAE), from January 23 to 24.” With peace talks, which had been stalled, gaining momentum through this trilateral meeting in the Middle East, the market anticipates that the Ukrainian reconstruction project-estimated to be worth about 750 trillion won (524 billion dollars)-will soon transition to a practical phase.

On this day, in the domestic stock market, the share prices and trading volumes of infrastructure and equipment companies capable of immediate deployment in the early stages of reconstruction rose together. HD Hyundai Construction Equipment surpassed a market capitalization of 2 trillion won, with its strength in owning essential equipment such as excavators for foundational construction coming into focus. This reflects expectations that the company will play a key role in supplying general-purpose equipment when large-scale civil engineering projects resume.

SG (SGE) has seen its stock price rise by about 10% recently, highlighted by the fact that it directly operates a local subsidiary in Ukraine. Trading volume has surpassed 3 million shares, with steady buying interest. In particular, the company’s highly durable “Eco Steel Asphalt Concrete,” which can be immediately used for local road infrastructure restoration due to Ukraine’s abundant iron ore slag, is drawing attention as a beneficiary of reconstruction.

JunJin Construction Robot specializes in concrete pump trucks (CPC). With expectations for strong demand for essential equipment to restore damaged homes and public facilities, trading volume in the morning was about five times the daily average. The volume exceeded 1.3 million shares, and after surging more than 15% during the session, the upward trend has continued.

Securities industry analysts believe that, among reconstruction-related stocks, “local networks” and “supply capability” will be the key criteria differentiating individual companies. They stress that it is important to verify fundamentals that can actually lead to orders, moving beyond vague expectations of the past.

Ko Sungmin, CEO of the listed company consulting firm Peter & Partners, analyzed, “Since reconstruction is a long-term project, rather than reacting emotionally to short-term volatility, it is necessary to examine whether companies have real project execution capabilities.” He added, “If companies that have demonstrated local networks and immediate equipment supply capabilities are validated in the market first, a solid trend is likely to continue.”