(Bloomberg) -- A South Korean cement maker’s stock has surged as retail investors pile into bets seen as tied to the nation’s upcoming presidential election and its front-runner Lee Jae-myung.
Shares of Sungshin Cement Co. climbed as much as 29% Tuesday, taking its three-day gain to 103%, helped by Lee’s proposal to move more government offices to the administrative capital Sejong. The 58-year-old company, which has plants in Sejong, has led gains on the benchmark Kospi over the past three sessions.
The June 3 election has spurred big moves in political-themed stocks in recent days, triggering exchange warnings over the speculative nature of such trades. Sangji Construction Inc., seen as having ties to a former Lee campaign team member, has surged around 800% so far in April. Shares of 4by4 Inc. are up about 400% this month on perceived ties to FuriosaAI, a high-profile chipmaker that Lee has visited.
“Many market participants likely see these stocks as better alternatives in the current market situation where tariff risks that could hurt earnings dominate,” said Ahn Hyunsang, chief executive officer at Korea Investment Research Institute, which offers stock trading tips to retail investors. “They could generate short-term trading profits.”
(Adds comment in last paragraph. An earlier version of this story corrected the day to Tuesday in the second paragraph)