Builders, train makers surge on hopes of inter-Korean exchanges

SEOUL (Reuters) - Shares of South Korean construction firms, train and steel manufacturers soared on Monday, buoyed by optimism as leaders of North and South Korea held their first summit in over a decade, and boosted hopes of economic projects between the two nations. On Friday, South Korean President Moon Jae-in and his North Korean counterpart Kim Jong Un agreed on a common goal of a "nuclear-free" peninsula, and to "adopt practical steps towards the connection and modernization of the railways and roads". Moon also said he expected the two Koreas to start joint research to pursue inter-Korean economic projects, declaring an official end this year to the 1950s Korean war. Shares of train manufacturer Hyundai Rotem <064350.KS> jumped 30 percent to their highest in near four years. Builders also surged with Hyundai Engineering & Construction Co Ltd <000720.KS> rallying 27 percent and Halla Corp <014790.KS> shares surging 30 percent to their highest since Oct 10, 2014. Steel shares rallied on expectations of higher construction demand, with POSCO <005490.KS> gaining 7 percent and Hyundai Steel <004020.KS> jumping as much as 13 percent. Hyundai Elevator <017800.KS>, the top shareholder in Hyundai Asan, which operated tours to North Korea's Mount Kumgang, also jumped 15 percent on hopes of resumption of key economic cooperation projects. Shipping company Hyundai Merchant Marine <011200.KS> rallied as much as 24 percent. Hyundai Merchant Marine was part of a South Korean consortium in a pilot project that brought Russian coal to South Korea through the North Korean port of Rajin. (Reporting by Hyunjoo Jin and Ju-min Park, Editing by Sherry Jacob-Phillips)