(Updates with closing share price in second paragraph.)
Oct. 21 (Bloomberg) -- LG Display Co., the world’s second- largest maker of flat screens, rose to the highest in more than two months in Seoul trading on speculation the worst might be over for the company after it posted a record loss.
The shares jumped 7.8 percent to 24,250 won at the close in Seoul, the stock’s highest level since Aug. 4, while the benchmark Kospi index rose 1.8 percent.
LG Display, a supplier of panels to Apple Inc., had a third-quarter net loss of 687.5 billion won ($597 million) because of slowing demand for displays and a foreign-exchange loss linked to a weaker won, the Seoul-based company said yesterday after the market closed. Losses at the company may narrow starting in the fourth quarter as demand for new televisions recovers, according to Hana Daetoo Securities Co.
“It’s time for the stock to reflect the view that quarterly earnings have bottomed out and will improve, no matter how little,” Lee Ka Keun, a Seoul-based analyst at Hana Daetoo, said in a report today. “The shopping season to last until the end of the year will boost TV demand, and it will be a direct factor improving LG Display’s earnings.”
Further declines in panel prices will likely be limited, and the industry will probably turn around in the second half of next year, LG Display Chief Financial Officer James Jeong said at a briefing yesterday.
The average price of LG’s panels fell 10 percent in the third quarter from a year earlier, according to the company.
--Editors: Garry Smith, Lena Lee
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