STX Corp., affiliates’ shares surge

STX Corp. and its affiliates jumped by the daily limit in Seoul trading following a report that the company may get aid from creditors to improve its finances.

STX Corp. jumped 15 percent to 5,020 won ($4.48) in Seoul, snapping a two-day, 30 percent losing streak. STX Engine and STX Heavy Industries also advanced by the daily 15 percent limit, while STX Offshore & Shipbuilding increased 10.5 percent.

The benchmark Kospi index dropped 1.6 percent, heading for the biggest loss since July 3.

A due diligence report provided to Korea Development Bank and other creditors concluded the value of the company as a going concern exceeds its liquidation value, Money Today, an online newspaper, reported Monday, citing unidentified banking officials.

Creditors will discuss on Aug. 22 whether to begin a voluntary debt restructuring program for STX, Jeong Yong-seok, an official at KDB, said by phone yesterday.

“The report seems to be driving STX Group shares,” said Suh Dong-pill, chief strategist at IBK Securities. “Mostly, retail investors seeking high risk and high return are investing in STX Group because every piece of news is increasing the volatility in the shares.”

STX Corp. is a holding company of STX Group.

STX Pan Ocean, Korea’s largest bulk carrier, which went into court receivership in June and was removed from STX Group, advanced 15 percent. Bloomberg