South Korea Stocks: Hanjin Shipping, Hynix, Samsung Electronics
Shares of the following companies had unusual moves in South Korea trading. Stock symbols are in parentheses and prices are as of 3 p.m. in Seoul. The Kospi Index (KOSPI) rose 9.4, or 0.4 percent to 2,180.59.
Units of STX Group and SK Group: STX Offshore & Shipbuilding Co. (067250 KS) sank 6.2 percent to 27,050 won. STX Corp. (011810 KS) retreated 5.5 percent to 20,800 won. STX Group, the South Korean shipbuilder and vessel operator, said it may team up with a Middle Eastern sovereign wealth fund to bid for a stake in Hynix Semiconductor Inc. (000660)
SK Group plans to bid for Hynix (000660 KS) as the industrial group seeks to find a new growth engine, the Seoul Economic Daily reported, citing an SK Group executive it didn’t name. In a filing yesterday, SK Group said it is undecided on a potential bid. SK Holdings Co. (003600 KS) fell 3.9 percent to 173,500 won.
Hynix lost 0.4 percent to 26,400 won.
Builders: Hyundai Engineering & Construction Co. (000720 KS) rose 2.8 percent to 88,700 won. GS Engineering & Construction Corp. (006360) (006360 KS) gained 2.3 percent 134,500 won. Samsung C&T Corp. (000830) (000830 KS) climbed 4.8 percent to 87,300 won. The shares gained after South Korea’s Pyeongchang was chosen to host the 2018 Winter Olympics.
“Contracts for infrastructure and stadiums will come, which should be positive for builders whose domestic orders have been a bit lackluster,” Han Jong Hyo, an analyst with Shinyoung Securities Co., said by phone today.
Hanjin Shipping Co. (117930 KS) lost 7.3 percent to 22,900 won. The company sold $150 million in convertible bonds for working capital, according to a filing today.
Samsung Electronics Co. (005930 KS), Asia’s biggest maker of chips, flat screens and mobile phones, sank 2 percent to 880,000 won. The company posted a 26 percent drop in second- quarter profit after a slump in sales of flat screens masked a surge in demand for smartphones and tablet computers.
Operating profit in the three months ended June fell to about 3.7 trillion won ($3.5 billion), compared with 5.01 trillion won a year earlier, according to a statement. That compared with the 3.8 trillion won average of 25 analyst estimates compiled by Bloomberg.
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