Basic materials sector gets boost from Trump expectations

Stock funds invested in basic materials and healthcare are showing promising profits so far this year on expectations of a market boom after new US President Donald Trump takes office, data showed Friday.

Fund rating company KG Zeroin said the profit rate for basic materials sector funds ranked at the top with 6.71 percent, followed by healthcare-related funds at 4.76 percent. The company surveyed local and foreign stock funds with more than 1 billion won ($848,896) operated for at least two weeks.

Brazil stock funds were a close third with 4.74 percent. Funds invested in Asian emerging market gained 2.95 percent, while those in South American emerging markets rose 2.81 percent, data showed.

The numbers compare with an average 1.81 percent profit for foreign stock funds and 1.53 percent for domestic funds.

Analysts said investors are betting on Trump's pledges to invest in infrastructure building and to engage in expansionary policies.

"Funds on basic materials are faring well on projections that Trump's promises will soon take shape and be executed," Oh On-soo, a researcher with KB Securities, said. "Brazil-related funds are getting traction from last year's boost in the price of raw materials." (Yonhap)