Shipping companies lead fall on higher cost of oil
The Kospi index declined 1.71 points, or 0.1 percent, yesterday closing at 2,063.14. The Kosdaq lost 0.1 percent to 809.50.Kospi 200 futures expiring in December added 0.6 percent to 263.40, while the underlying index advanced 0.1 percent to 260.76.
About 396 million shares valued at 8.6 trillion won ($9.5 billion) changed hands on the Korea stock exchange, 26 percent more than the three-month daily average of 6.8 trillion won.
Shipping companies declined, led by STX Pan Ocean, on concern record crude oil prices will squeeze profit.
“It’s clear that the very high oil prices will lead to lower profitability next year,” said Kwak Tai-ho, an analyst with Kyobo Investment Trust Management in Seoul. “We’ll have to see if shipping lines are able to reflect those costs in cargo rates.”
STX Pan, Korea’s biggest bulk carrier, lost 365 won, or 7.8 percent, to 4,335 won.
Hanjin Shipping, the largest shipping line in Korea, slid 1,100 won, or 2.1 percent, to 51,000 won.
LG.Philips LCD, the world’s second-largest maker of liquid- crystal displays, gained 1,650 won, or 3.4 percent, to 50,900 won.
JPMorgan lifted its price estimate for the company by 17 percent to 70,000 won in a report. The company will benefit from demand from China in the first half of 2008, especially before the Olympics, the brokerage said.
Industrial Bank, Korea’s biggest lender to smaller businesses, retreated 950 won, or 5.2 percent, to 17,350 won.
GS Holdings, which operates the nation’s second-biggest oil refiner, gained 3,200 won, or 5 percent, to 67,200 won.
SK Energy, Korea’s largest oil refiner, gained 3,000 won, or 1.5 percent, to 204,000 won.
MegaStudy advanced 37,000 won, or 11 percent, to 366,000.
Goldman Sachs lifted its price estimate for the provider of online educational programs by 57 percent to 381,000 won in a report.
Bloomberg
with the Korea JoongAng Daily
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