Hyundai slides after Shinheung purchase

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Hyundai slides after Shinheung purchase

Korea’s Kospi index fell 11.51 points, or 0.7 percent, to close at 1,631.78 in Seoul. About 311 million shares valued at 4.1 trillion won ($4.3 billion) changed hands, 27 percent less than the three-month daily average of 5.6 trillion won.
The following were among the most active stocks in Korean markets.
Hyundai Motor lost 2.2 percent to close at 67,500 won. Hyundai Mobis, the nation’s largest auto-parts maker, fell 3.1 percent. Hyundai Motor and its affiliates agreed to pay 209 billion won for a combined 30 percent stake in Shinheung Securities, the automaker said Tuesday.
The group is paying a “significant premium to the sector” for Shinheung, Credit Suisse Group said in a report.
Hansol Paper lost 2.5 percent. Fourth-quarter operating profit tumbled 54 percent to 17.6 billion won, the company said.
Hyundai Heavy Industries, the world’s biggest shipbuilder, climbed 2.8 percent. Hyundai Mipo Dockyard, the Korean yard with the highest profit margin, gained 3.5 percent.
“Market uncertainties are being washed away as the flow of new orders seems to be gaining momentum,” BNP Paribas SA said in a report. Hyundai Heavy and Mipo are the brokerage’s favored stocks among Korean shipyards, according to the report.
KCC, a building materials maker, climbed 8.4 percent, the biggest jump since July 4. The company said it received a 92.5 billion won order for polycrystal silicon from U.S.-based Solar Power Industries Incorporated.
Woori Finance Holdings, Korea’s third-largest lender by market value, fell 3.1 percent, the lowest since Jan. 31. Fourth-quarter net income slid 54 percent to 199.3 billion won because of losses on U.S. subprime-related investments, the company said. Analysts in a Bloomberg News survey had expected profit of 374.3 billion won.
Bloomberg
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