South Korea Equity Movers: GS Engineering, LG Uplus, Samsung
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 (KOSPI) fell 2.3 percent to 1,666.52, taking its two-day retreat to 5.8 percent.
Builders: GS Engineering & Construction Corp. (006360) (006360 KS) slumped 15 percent to 74,100 won. Daelim Industrial Co. (000210 KS) sank 14 percent to 70,500 won. Hyundai Engineering & Construction Co. (000720 KS) slipped 9.1 percent to 52,200 won. The builders fell amid speculation lower oil prices will damp plant construction demand in the Middle East, said Im Jeong Jae, a fund manager at Shinhan BNP Paribas Asset Management Co.
Handset makers: Samsung Electronics Co. (005930 KS), the world’s second-largest maker of mobile phones, added 1.7 percent to 842,000 won, after Apple Inc. unveiled an upgrade to the iPhone 4, short of an overhaul of the model. LG Electronics Inc. (066570) (066570 KS), the world’s third-largest, advanced 0.4 percent to 69,500 won, the highest level since Aug. 4.
“LG has been the biggest victim of the iPhone,” Kang Yoon Hum, an analyst at NH Investment & Securities Co., said by phone. “If Apple shows a crack, people in the market seem to think LG might be able to squeeze in.”
LG Uplus Corp. (032640) (032640 KS), a mobile-phone services operator, retreated 2.6 percent to 6,320 won. The company’s stock rating was cut to “underperform” from “neutral” at Bank of America Corp., which said LG Uplus’s earnings and cash flow will be affected by mobile tariff cuts and higher marketing expenses, according to a report dated yesterday.
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