Daewoo Construction is showing strong momentum, rising more than 5% during trading, driven by growing expectations for an expansion in new orders both domestically and internationally. Coupled with improving investment sentiment in the construction sector, an influx of buying has allowed the stock price to recover to the 19,800 won level.

As of the morning session on the 1st, Daewoo Construction is trading at 19,810 won, up 970 won (5.15%) from the previous trading day. Expanding its gains from early in the session, the stock has maintained a strong upward trend, reaching as high as 19,910 won. Trading volume has surpassed 7.15 million shares, drawing concentrated market attention. With a steady influx of buying, the stock has maintained an increase of around 5% throughout the session.

The market is positively evaluating Daewoo Construction's stable order backlog and the potential for expansion in its domestic housing business as well as overseas plant and infrastructure projects. The recent succession of project orders in overseas construction markets, including the Middle East, is also supporting investor sentiment.

Improved Global Investment Sentiment and Government SOC Investment Expectations Also Act as Positive Factors

Global investment sentiment improved overnight as the U.S. New York stock market closed higher, driven by the strength of artificial intelligence (AI)-related tech stocks. As a risk-on mood spread, buying has flowed into cyclical stocks, including construction shares, in the domestic stock market as well.

Analyses suggest that expectations for the government's expansion of social overhead capital (SOC) investment and the revitalization of urban redevelopment projects are also creating a favorable environment for the construction sector. Forecasts indicate that if interest rate cut expectations persist, the likelihood of a housing market recovery and improved profitability for construction firms will also increase.

The securities industry believes that if Daewoo Construction expands its order backlog centered on domestic housing projects, overseas plants, nuclear power, and infrastructure businesses, it is likely to sustain its earnings improvement. In particular, they projected that the company's success in securing orders for large-scale overseas projects will serve as a key variable for its future corporate value and stock price trajectory.

The market is closely monitoring changes in foreign and institutional supply and demand, additional order announcements, and the direction of real estate policies and interest rates as the core variables that will dictate future stock price movements.

[This article was written with the assistance of AI. This article does not constitute investment advice, and the final decision and responsibility for investments lie with the investor.]