Steel, machinery firms gain as telecoms fall
The benchmark Korea Composite Stock Price Index rose 52.71 points, or 5.6 percent, to 999.16 yesterday after opening over 3 percent lower on overnight U.S. losses. Volume was heavy at 642.6 million shares worth 6.18 trillion won ($4.2 billion), with gainers outpacing losers 624 to 230.The Kospi has more lost more than half its value from a historic high of 2,085 points in November 2007, largely on selling by offshore investors. Foreign selling amounted to some 34.3 trillion won so far this year, according to the Korea Exchange, the bourse operator.
Exporters led the overall gains, with steel and machinery stocks chalking up strong gains. Leading steelmaker Posco soared 13.69 percent to 299,000 won and top power generator producer Doosan Heavy Industries rose to a daily limit of 15 percent to end at 46,000 won.
Technology and automaking shares also added momentum. Samsung Electronics Co., Asia’s largest maker of chips and handsets, gained 25,500 won, or 5.8 percent, to 463,500. UBS AG raised its recommendation to “neutral’’ from “sell,’’ in a note to reflect that the stock has dropped about 50 percent since May.
Smaller chip rival Hynix Semiconductor soared 14.9 percent to 9,330 won. Leading automaker Hyundai Motor rallied 12.6 percent to 58,100 won.
Telecoms, however, fell hard. SK Telecom, the nation’s top wireless carrier, plunged 6.72 percent to 187,500 won after announcing disappointing third-quarter earnings, while its rival KTF plunged 13.67 percent after its former president, now being held in custody, admitted to receiving kickbacks from suppliers during a court hearing. CJ Home Shopping Co., the operator of a cable television shopping channel and Internet mall, rose 2,200 won, or 6.7 percent, to 34,900, the most since Oct. 14.
Goldman, Sachs and Co. reiterated its “buy’’ rating, saying the current stock price is “near floor value,’’ while it cut its earnings forecast for next year to reflect a weaker consumption outlook.
Pyeong San Co., which makes various products for wind power generators, surged 1,800 won, or 15 percent, to 13,850. The company said it received a 117.7 billion won ($80 million) parts supply deal from a client in Europe it didn’t identify.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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