CJ CheilJedang Corp. (097950) shares climbed the most in nine weeks, pacing gains among South Korean snackfood makers, as the company confirmed a report it may raise prices of some products.
CJ, South Korea’s biggest food processor, closed 3.4 percent higher, the steepest gain since Oct. 12, to 348,500 in Seoul. Lotte Confectionery Co. (004990) gained 4.3 percent, the most since Aug. 9, to 1,545,000 won. Orion Corp. (001800) rose 4.3 percent to 1,024,000 won. The benchmark Kospi index lost 0.6 percent.
CJ may raise prices of some fresh food this month, Newspim reported today, citing an unidentified company official. CJ is seeking to increase tofu and bean-sprout prices this month, though the scope of the price gains has not been determined, Lee Eun Young, a company spokeswoman, said by phone today in response to Bloomberg queries on the report.
“The expectation for price increases appears to be boosting CJ shares today,” said Kim Yun Oh, an analyst with Shinyoung Securities Co. in Seoul. “Other snack makers are being boosted as well on bets the companies may follow suit.”
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