Sharp drop in broker target-price upgrades, Gwangju no-fly zone7month 14day takes effect
7Since the start of the month, the number of semiconductor target-price upgrades by brokerages has plunged. Over the same period, as the need to secure power for operating a facility worth trillions of won came into focus, nuclear power-related stocks rose, and the Ministry of Land, Infrastructure and Transport designated the area near Gwangju Air Base as a no-fly zone for a period of800years,2with effect from7month 14day.
The number of semiconductor target-price upgrades by brokerages has plunged7since the start of the month, affecting investor sentiment. This fact is presented as the background for diverging sector outlooks.
7In reports from10month 11~ day, some brokerages said the streak of target-price upgrades had stopped, while others maintained a still-bullish view. The gap in views among brokerages has widened.
It was pointed out that securing large-scale power is necessary to operate a large fab. 800It was noted that sufficient electricity is essential to run a semiconductor fab worth trillions of won.
As power issues came into focus, nuclear power-related stocks7rose in early month. At the same time, stocks in semiconductor materials, parts, and equipment, or so-called “sobujang” companies, also surged across the board.
The Ministry of Land, Infrastructure and Transport designated7 month 9 day the area near the site of Gwangju Air Base as a land transaction permit zone related to the semiconductor cluster. The designation period is 2 years, and it takes effect on 7 month 14 day.
These points cited in various reports and reports are presented as variables from the industry, policy, and power sides, respectively. At present, it is confirmed that securities firm outlooks and policy announcements are simultaneously affecting the market.