As overall market pressures increase, KT&G is showing early gains driven by expectations for shareholder returns and its appeal as a defensive stock.
According to the Korea Exchange, as of 9:54 a.m. on October 19, KT&G shares were trading at 191,700 won, up 1,200 won (0.63%) from the previous trading day. The stock reached as high as 193,800 won in early trading. Although it later gave back some gains, it continued to trend upward.
KT&G has seen six consecutive days of increases from October 12 to the present. The stock rose 1.58% on October 12, followed by increases of 0.67% on October 13, 0.22% on October 14, 3.96% on October 15, and 0.79% on October 16. This recent strength in share prices is attributed to heightened investor sentiment surrounding the anticipated shareholder return policy.
Park Seong-ho, a researcher at LS Securities, noted in a report that "the new shareholder return policy expected to be announced in the second half of the year and the anticipated increase in dividend payouts are supporting robust investor sentiment." He added that "the recent increase in market volatility is also creating favorable conditions for defensive stocks like KT&G."
He further stated, "Expectations for shareholder returns and market supply momentum are likely to continue through the end of this year," maintaining a 'buy' rating with a target price of 230,000 won.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.