Nuclear power-related stocks including BHI, KEPCO E&C, KEPCO KPS, Woori Technology, and Hyundai Engineering & Construction surged simultaneously to their daily upper price limits during the closing auction. Market participants pointed to possible passive fund inflows from exchange-traded fund (ETF) rebalancing, while attention also turned to whether erroneous orders were involved.
According to the Korea Exchange on Wednesday, BHI closed at 80,600 won, up 30.00% from the previous trading day, while KEPCO E&C rose 29.98% to 151,300 won and Woori Technology gained 29.96% to 17,570 won. KEPCO KPS and Hyundai Engineering & Construction also ended the session sharply higher, surging 29.61% and 28.36%, respectively.
These stocks jumped as large buy orders flowed in during the closing auction period after 3:20 p.m. In the market, large-scale buy orders for each stock were reportedly concentrated through Meritz Securities. Because the closing auction determines the closing price through a single-price method, price volatility can widen when large one-directional orders flow in.
The surging stocks are leading names in the nuclear power value chain. BHI operates in power generation equipment and nuclear auxiliary devices, KEPCO E&C in nuclear plant design, KEPCO KPS in nuclear plant maintenance, Woori Technology in nuclear instrumentation and control systems, and Hyundai Engineering & Construction in nuclear plant construction.
"This is something that occurred during the ETF rebalancing process," a Meritz Securities official said. "The specific circumstances are currently being verified."
