Bloomberg News

South Korea Stocks: Hanjin Heavy, KB Financial, SK Holdings

June 21, 2011

June 21 (Bloomberg) -- Shares of the following companies had unusual moves in South Korea trading. Stock symbols are in parentheses and prices are as of the 3 p.m. close in Seoul.

The Kospi Index rose 28.52, or 1.4 percent, to 2,048.17, halting a three-day, 3.2 percent retreat. It was the gauge’s biggest gain since May 31.

Banks: KB Financial Group Inc. (105560 KS), owner of South Korea’s largest bank, rallied 5.4 percent to 51,000 won. Shinhan Financial Group Co. (055550 KS) added 4.4 percent to 50,800 won. Industrial Bank of Korea (024110 KS), the nation’s largest lender to small- and medium-sized companies, advanced 4.3 percent to 20,550 won. The nation’s loan growth, especially for small- and medium-sized companies, may improve in the second half, and bank stocks are “undervalued,” Daewoo Securities Co. said in a report today.

Hanjin Heavy Industries & Construction Co. (097230 KS), a shipyard, jumped 4.7 percent to 30,250 won, the steepest increase since June 3. The company was raised to “buy” from “trading buy” at Daewoo Securities, which said in a report today earnings and orders will improve in the second half.

Hynix Semiconductor Inc. (000660 KS) climbed 2.8 percent to 25,900 won. Shareholders will receive preliminary bids until July 8 for their controlling stake in the world’s second-largest maker of computer-memory chips, Korea Exchange Bank said. Nine financial institutions led by Korea Exchange Bank will pick a preferred bidder in August, the bank said in a statement.

SK Holdings Co. (003600 KS) added 5.6 percent to 180,000 won, the largest rally since May 31, after two unlisted units, SK E&S Co. and K-Power Co., said they will merge. “Given the synergies expected between the units following the merger, the decision is positive,” Korea Investment & Securities Co. said in a report today.

--Editor: Shiyin Chen

To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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