South Korea Stocks: Industrial Bank, Kumho Tire, Poongsan, S.M.
The Kospi Index fell 0.5 percent to 1,866.22, following a three-day, 2.8 percent advance.
Metal companies: Poongsan Corp. (103140 KS), a copper- products maker, added 5.2 percent to 28,200 won, its steepest increase since Dec. 1. Korea Zinc Co. (010130) (010130 KS), South Korea’s biggest zinc smelter, rose 1.1 percent to 320,500 won. Copper futures for March delivery climbed 2.7 percent on the Comex in New York yesterday. Zinc also advanced.
Industrial Bank of Korea (024110) (024110 KS), South Korea’s largest lender to small- and medium-sized companies, retreated 6.2 percent to 11,450 won, the lowest close since July 2009. HMC Investment Securities Co. cut its stock rating to “hold” from “buy.” Lower lending rates and free consulting services for small-and medium-sized companies may reduce net income by 400 billion won ($349 million) in 2012 from the previous year, Industrial Bank said in a Jan. 3 regulatory filing.
Kumho Tire Co. (073240) (073240 KS), a tiremaker, slipped 1.5 percent to 10,050 won, the lowest level since Nov. 28. The company is in talks with creditors to come up with various measures to improve its finances, including a new share sale, according to a regulatory filing.
S.M. Entertainment Co. (041510) (041510 KS), which manages South Korean bands Girls Generation and Super Junior, advanced 1.5 percent to 48,200 won, rising for a fifth day. Daewoo Securities Co. raised its share-price estimate to 70,000 won from 57,000 won, citing higher earnings estimates.
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