Speculation on merger helps lift Posco, Kospi
Seoul stocks rose for the second straight trading day after U.S stock markets fared strongly on better-than-expected economic data. Posco and Hyundai Motor, Korea’s largest automaker, led the gain.The benchmark Kospi rose 1.6 points, or 0.1 percent, to close at 1,452.55.
The Dow Jones Industrial Average rose 0.4 percent to 12,348.80 on Thursday after the U.S. government revised the nation’s economic growth last year up to 2.5 percent from the 2.2 percent reported a month ago.
Samsung Electronics, the world’s largest computer memory chipmaker, gained 1.1 percent to close at 563,000 won ($598). Posco, Korea’s largest steel maker, rose 1.7 percent on speculation that it is in talks to merge with Arcelor Mittal and expectation that its fourth-quarter profit would improve. LG Electronics, Korea’s second-largest electronics manufacturer, climbed 2.7 percent after Citigroup raised its target stock price on LG from 56,000 to 73,000, saying global cell phone sales would expand this year.
Kia Motors, a subsidiary of Hyundai Motor, soared 3.3 percent after industry representatives said the firm’s U.S. sales in the first quarter beat its target by 4,000 units on the popularity of its Rondo and new Opirus models.
Shares of SK, the nation’s biggest oil refiner, spiked 2.1 percent as analysts bet the firm would earn more cash through stock listing of its subsidiary, SK Incheon Oil. Analysts also expect first-quarter profit of local refiners to significantly climb compared to the fourth quarter last year.
Trading volume was 283.4 million shares, worth 3.2 trillion won. Advancers beat decliners, 426 to 330.
The tech junior Kosdaq rose 3.62 points, or 0.6 percent, to close at 648.99. Trading volume was 740.4 million shares, worth 2 trillion won. Advancers outnumbered decliners, 517 to 382.
By Jung Ha-won Staff Writer [hawon@joongang.co.kr]
with the Korea JoongAng Daily
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