U.S. investment bank Goldman Sachs says the peaceful mood on the Korean Peninsula that will be further boosted by the inter-Korean summit will have a positive impact on the South Korean stock market.

Goldman Sachs made the assessment in a report on Thursday, addressing growing interest among investors in the size of “peace dividends” amid the denuclearization efforts on the Korean Peninsula.

However, it said the market’s response to the changed geopolitical situation is modest, and rising U.S. government bond yields as well as tensions over a trade war between the U.S. and China could offset its impact on the market.

It predicted if those concerns are eased, geopolitical factors will then play a more significant role in boosting South Korean stocks and the local currency.

It said eased geopolitical concerns on the Korean Peninsula will positively affect South Korean stocks in the construction, steel and machinery industries in particular as they could be boosted by greater inter-Korean economic cooperation.