Posco Stocks Keep Luring Foreigners

Home > Business > Finance

print dictionary print

Posco Stocks Keep Luring Foreigners

The stock price of Pohang Iron & Steel Co. is continuing its rally, boosted by heavy buying from foreign investors.

On Tuesday, Pohang Iron & Steel, also known as Posco, closed up 2.05 percent at 99,500 won ($79.80), while most other large blue-chip shares remained in negative territory. It gained 30.06 percent from its close at the end of last year, outperforming the 14.45 percent rise in the benchmark Korea Composite Stock Price Index during the same period. It reached 100,500 won in early trading, the highest level in six months.

There is growing expectation that the steelmaker will revise its company regulation at a coming general shareholders meeting to allow itself to cancel its treasury stocks only with the board's decision, analysts said. Early this month, the company announced that it will retire 3 percent of its shares to boost its stock price.

Above all, Posco's recent strength is backed by foreign investors, who snapped up 5.61 million of the firm's outstanding shares this year through Monday. They held 54.77 percent of the company as of Monday, up from 48.95 percent at the beginning of this year.

Analysts say that Posco has emerged as an alternative to key semiconductor and telecommunication shares, which are losing steam. In addition, they say, overseas investors are attracted by the fact that the steelmaking business and prices of steel products are at the bottom.


by Rah Hyun-cheol / Kim Hyun-chul

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)