Kospi, won rise, but Samsung SDI slumps
Korean stocks closed 0.07 percent higher yesterday as U.S. economic stimulus plans lifted investor sentiment, outweighing profit-taking, analysts said. The local currency rose against the U.S. dollar.After volatile trading, the benchmark Kospi climbed 0.79 point to 1,105.84. Volume was moderate at 478.6 million shares worth 5.94 trillion won ($4.09 billion), but losers outnumbered gainers 408 to 403.
“Although the market underwent some volatility, given the previous session’s steep gains, the local bourse maintained solid movement,” said Lee Sun-yup, an analyst at Goodmorning Shinhan Securities Co. “Hopes for saving the ailing U.S. auto industry and a set of economic stimulus plans helped lift investor sentiment.”
Foreign investors snapped up a net 200.3 billion won worth of local stocks on the Seoul bourse.
Top carmaker Hyundai Motor advanced 1.29 percent on rising expectations of a bailout plan for the teetering U.S. auto industry. But its affiliate Kia Motors declined 1.84 percent. Top steelmaker Posco gained 3.81 percent and market leader Samsung Electronics added 1.19 percent to 469,500 won. Korea Electric Power Corporation, the state-run electricity provider, climbed 0.84 percent and Hyundai Heavy Industries, the world’s largest shipyard, also gained 3.13 percent.
Chip giant Hynix Semiconductor, however, fell 5.26 percent after U.S.-based investment fund AllianceBernstein L.P. sold a 4.95 percent stake in the chipmaker.
Samsung SDI, the world’s second-largest maker of plasma display panels, also plunged to its lowest close in seven years in Seoul after Citigroup cut its share-price target by 30 percent on concern slowing demand for flat screens will hurt earnings.
Samsung SDI dropped 6.7 percent, the lowest since January 2002. The benchmark Kospi index rose 0.1 percent.
“With growing concerns on the PDP business in light of the liquid-crystal display downturn and a weakening macro, we forecast SDI’s PDP division to be at an operating loss well into 2009,” Citigroup analysts including Jonathan Rhee said in a note sent to clients yesterday.
The local currency closed at 1,447 won to the dollar, up 1.3 won from Monday’s close, as offshore investors snapped up local stocks, dealers said. Yonhap, Bloomberg
with the Korea JoongAng Daily
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