Shares of the following companies had unusual moves in South Korea trading. Stock symbols are in parentheses and prices are as of the close in Seoul. The Kospi Index rose 0.8 percent to 1,823.10, taking its six-day advance to 9.4 percent.
Automobile parts makers: Pyeong Hwa Automotive Co. (043370 KS) rallied 3.2 percent to 19,500 won, the highest level since Aug. 2. Mando Corp. (060980 KS) rose 1 percent to 197,000 won. The companies gained on speculation their earnings will get a boost from a free-trade agreement with the U.S.
The Senate approved legislation on a trade deal with South Korea, the biggest for the U.S. since the North America Free-Trade Agreement in 1994. Korean parts makers will benefit from the complete removal of tariffs once the accord takes effect, Korea Investment & Securities Co. said in an Oct. 6 report.
Defense-related shares: Speco Co. (013810 KS), a defense equipment manufacturer, jumped by the daily limit of 15 percent to 1,865 won. Victek Co. (065450 KS), which makes electronic warfare equipment, rallied 8.2 percent to 1,460 won, while Huneed Technologies (005870 KS), a military communication equipment manufacturer, gained 4 percent.
The shares gained after Yonhap News reported South Korea’s military increased combat readiness after spotting unusual military movement by North Korean forces along the western sea border. South Korea’s military raised its level of combat readiness as a result of President Lee Myung Bak’s visit to the U.S. and not because of any unusual movement from North Korea, a Defense Ministry official said.
Hana Financial Group Inc. (086790 KS) added 7 percent to 38,800 won, the highest level since Aug. 4. The stock gained on speculation that its purchase of Korea Exchange Bank from Lone Star Funds may be expedited, according to Hong Hun Pio, an analyst at KTB Investment & Securities Co.
Lone Star Funds declined to appeal a conviction for stock-price manipulation in Korea, the nation’s financial regulator said, avoiding another hurdle to gaining approval for its $3.8 billion sale of a stake in Korea Exchange Bank.
Samsung Electronics Co. (005930 KS), Asia’s biggest maker of chips, flat screens and mobile phones, fell 0.9 percent to 890,000 won, its first drop since Oct. 4. Samsung lost a bid to sell its newest tablet computer in Australia until after a patent dispute with Apple Inc. is settled, a decision that means the product may not come to market in the country.