Construction-related shares drew active buying Monday from investors betting such firms will see sharply higher demand due to the recent string of natural disasters hitting the nation.
Shares of Daiwa Kosho Lease, a major prefab leasing company, surged 27 yen to 591 yen on the Tokyo Stock Exchange, while Tekken, a midsize contractor with a strong position in railway and road works, ended the day up 50 yen at 219 yen.
“Stocks of construction- related companies drew heavy buying on speculation that demand for such shares will be stirred by the government’s move to compile a supplementary budget” for fiscal 2004, said Hiroichi Nishi, equities general manager at Nikko Cordial Securities Inc.
Among other issues that gained ground, Nippon Hume, Japan’s largest manufacturer of sewerage pipes, jumped 80 yen to 371 yen, and Nissei Build Kogyo, a major builder of steel-frame temporary prefab houses, soared 80 yen to 364 yen.
Last month, Japan was lashed by a series of natural disasters, including typhoons in many areas and powerful earthquakes in Niigata Prefecture.
Many people in the quake-stricken areas are still staying in temporary shelters or vehicles, while lifelines such as water and electricity are still crippled in some areas.
The ruling Liberal Democratic Party and its coalition ally, New Komeito, agreed last week to compile an auxiliary budget to address the recent spate of disasters.
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