South Korean Stocks: Basic House, Hankook, Jeonbuk Bank, Kolon
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 0.5 percent to 1,824.17. The gauge advanced 2.3 percent this week, the first gain in three weeks.
GS Engineering & Construction Corp. (006360) (006360 KS) rose 1.3 percent to 78,700 won, the highest level since May 10. The South Korean builder said it won a 593.3 billion won ($500 million) order from Singapore to build a hospital.
Hankook Tire Co. (000240) (000240 KS), South Korea’s biggest tiremaker, rallied 6.1 percent to 48,200 won, the highest level since Jan. 18. The company’s sales volume is likely to continue to rise on a higher global market share, while raw material costs are falling, KTB Investment & Securities Co. said in a report today. Hankook’s 2012 operating profit margin may rise to 16.1 percent if current raw material prices are maintained, the brokerage said.
Other tiremakers also climbed, with Nexen Tire Corp. (002350) (002350 KS) adding 3 percent to 20,950 won and Kumho Tire Co. (073240 KS) rising 5.1 percent to 13,300 won.
Jeonbuk Bank (006350) (006350 KS) gained 3.9 percent to 4,350 won. The South Korean lender plans to buy back 2.39 million shares, according to a regulatory filing.
Kolon Industries Inc. (120110) (120110 KS), a South Korean maker of chemical fibers and textiles, rallied 3.1 percent to 65,900 won. The company’s first-quarter operating profit rose 25 percent from the previous quarter to 96.1 billion won.
Second-quarter profit will climb to 108.7 billion won, Tong Yang Securities Inc. said in a report today. Kolon is posting “stable” earnings and its valuation is attractive, Hyundai Securities Co. said in a separate report.
The Basic House Co. (084870) (084870 KS), a South Korean apparel maker, dropped 1.7 percent to 11,950 won. Daishin Securities Co. cut its stock rating to marketperform from buy, citing weaker- than-expected first-quarter earnings. Shinhan Investment Corp. and Korea Investment & Securities Co. also reduced their share- price estimates.
To contact the reporter on this story: Saeromi Shin in Seoul at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com