Construction firms surge as won tumbles
Korean stocks finished slightly higher yesterday in choppy trading as investors hunted for blue chip bargains following a recent bear run, analysts said. The local currency tumbled against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 4.72 points, or 0.3 percent, to 1,568.72 after dropping to an intraday low of 1,544.12 in morning trade. Volume was thin at 218 million shares worth 3.6 trillion won ($3.5 billion), with gainers outnumbering losers 460 to 327.
“The market managed to gain ground despite U.S. stock declines on Thursday, as bargain hunters snapped up finance and shipyard stocks,” said Lim Dong-min, an analyst at Dongbu Securities.
Construction shares were the biggest gainers, with top domestic builder Daewoo Engineering and Construction surging 3.6 percent to 12,850 won and Hyundai Engineering and Construction surging 2.2 percent to end at 64,800 won.
Machinery and finance stocks also gained. Leading power generator producer Doosan Heavy Industries and Construction advanced 2.9 percent to finish at 97,000 won and fifth-largest lender Korea Exchange Bank added 1.5 percent to 13,500 won.
LG Corp., the holding arm of Korea’s fourth-largest industrial group, climbed 1,100 won, or 1.7 percent, to 67,400, the highest since June 30.
The stock is cheap as the value of the company’s land assets and stakes in affiliates is larger than its market value, Macquarie Group Ltd. said in a report.
Tech exporters, however, were mixed, with Samsung Electronics losing 0.9 percent to end at 573,000 won.
LG Electronics Inc., Asia’s second-largest handset maker, gained 3,000 won, or 2.7 percent, to 113,500, the highest since July 24.
A drop in the share price triggered by concern about second-half earnings was “excessive,’’ Prudential Investment and Securities Co. said in a report.
Third-quarter operating profit, or sales minus the cost of goods sold and administrative expenses, will be “stable’’ at more than 600 billion won, the brokerage said.
NHN Corp., which cut its projection for full-year sales and operating margin yesterday, dropped 13,700 won, or 7.8 percent, to 161,300, the steepest decline since May 7.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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