Analysts choose exporters for April

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Analysts choose exporters for April

Information and technology firms, shipbuilders and automakers could be the most lucrative shares this month, according to local brokerages yesterday. These sectors are expected to post significant earnings growth during the first quarter. they said. Earnings will be released in April.
In a report, Yang Hae-jung, an analyst at Daishin Securities, said the IT shares recorded solid returns last month. In March, the local stock market was deemed by many analysts to have hit bottom.
“The monthly return of IT shares was 7.6 percent as of March 26, one of the highest among local shares,” Yang said. “The ascent of these shares will carry on for the time being.”
Yang said IT share prices will rise further when they report improving first-quarter business performance.
He said automakers and shipbuilders also deserve attention as their profits improved in February and March.
For the same reason, Soh Jang-ho, an analyst at Samsung Securities, said in a report that IT companies and automakers should be overweighted. The report said those firms will post more profit due in part to the falling value of Korean won.
Hyundai Heavy Industries, LG Electronics and Hanwha were included in a list of firms expected to see higher profits, Soh said.
The two brokerages were positive about the local stock market, saying April will be the beginning of a long-awaited recovery.
Daishin said the net profit of local listed firms in April will post an average of 13 percent quarterly growth, after two straight negative quarters. This will initiate an upward trend in the local stock market, Daishin said.
Samsung said the Kospi will rebound to 1,740 points this month. “A full-fledged recovery will come in mid-May when announcements of better business performance will provide momentum,” it said.


By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
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