Fall of 17% is reversal of strong share orders for Korean insurers
WSJ Fri-Sun, Oct 9-11, 2009
Tong Yang Life insurance co. tumbled 17% on its trading debut on the Korea Exchange despite strong demand for its shares during order-taking, in a second sign of souring sentiment toward initial public offerings in the country.
The company is the first Korean life insurer to enter the market after the government in 2007 eased restrictions for life insurers to list publicly. The offering was subscribed by almost 13 times last week, as retail investors showed keen interest.
But signs of investor fatigue were becoming evident earlier this week, as spirit maker Jinro Ltd. was forced to lower its IPO price to 41,000 per share, below an indicative price range of 45,000 won-50,000 won. The indicative range had been itself reduced from 54,000 won-to 60,000 won due to lack of interest.
Some said Tong Yang's disappointing debut may not bode well for some of peer companies that alos are considering IPOs.
Tong Yang Life raised 340.38 billion won ($291.4million) from the IPO, making it one of the country's largest new listings in recent years. Share ended the first day at 14,150 won, compared with its IPO price of 17,000, already the bottom of the proposed range of 17,000 won to 22,000 won. The day's drop was frar steeper than the 4.5'% fall in the Kospi index since the IPO was priced on Sept. 25. The Kospi closed at 1615.46 Thursday, up 1.1% on the day.
Stephanie Hahn, an anayyst at Woori Investment & Securities, pegged the appropriate share price for Tong Yang at between 12,000 won and 15,000 won based on a fair price-to-book ratio of 1.8 times.
"Since it was the first life insurer, investors had been, more than eager, driving up the price," during subscription, said Park Yoon-young, an analyst at HMC Investment & Securities.
Mr.Park said Tong Yang's performance will serve as a guide for the pricing of future IPOs in the sector.
With the domestic stock market up 44% so far this year, more life insurers are expected to launch IPOs from next year to replenish capital and support growth.
Next in line is Korea Life insureance, the country's second-largest life insurer by total premiums. Korea Life is majority-owned by Hanwha Group, whose chairman, Kim Seung-youn, said in September that a listing plan is in motion.
Saturday 10 October 2009
Wednesday 7 October 2009
Samsung Projects Growth
Chip maker, helped by increase price, expects 19% sales rise
Samsung Electronics Co., a global behemoth in memory chips and flat-screen TVs, expects its third quarter sales rise about 19% and sees its consolidated operating profit coming in between 3.9 trillion won and 4.3 trillion South Korean won ($3.67 billion).
Operating profit totaled 1.48 trillion won in the third quarter of 2008.
The company, South Korea's biggest by market capitalization, estimated the consolidated sales of between 35 trillion and 37 trillion won for the third quarter. That compares with sales of 30.3 trillion won a year earlier.
The company is expected to announce its its quarterly earnings profit Oct. 30. All figures are on a consolidated basis.
Samsung didn't provide explanation for the earnings guidance and said the latest forcast may differ from actual earnings because it hasn't completed an audit.
Analysts said the recent sharp rise in the memory chip prices and improved prices for liquid-cystal displays, combined with continued firm performances in Samsung Electronics's other businesses, are buoying the company's third-quarter profits. However, they expect their earnings growth taper off in the current quarter due to strengthening local currency and seasonally higher market costs.
A poll of 13 analysts by local researcher FNGuide put Samsug's third-quarter operating
at 3.7 trillion won. The consolidated sales forcast is 36 trillion won, in line with Samsung's estimates.
" Market share really jumps on all fronts - DRAM, flast, handsets, TVs, LCD panels, " said Jay Kim, who follows Samsung for Hydudai Securities in Seoul.
Despite the news, share of the electronics giant slipped. In Seoul trading, the stock fell 2000 won to 745,000 won, though the still outperform the broader index, which fell 0.5%.
Samsung is the world's largest manufacturer of DRAM, or dynamic ransom access memory, chips, NAND flash memory chips, flatscreen televisions and liquid crystal displays. the company is the world's second-largest maker of mobile phone handsets hehind Nokia Crop.
DRAMs are used mostly in personal computers, while NAND flash chips are used in devices such as digital cameras and music players.
Samsung recorded its first net ever loss in the four quarter of 2008 as the global economic slump hit prices and demand. the company returned to profi in the first quarter of this year, though it was down sharply from the year before.
from WSJ on Oct. 7
Samsung Electronics Co., a global behemoth in memory chips and flat-screen TVs, expects its third quarter sales rise about 19% and sees its consolidated operating profit coming in between 3.9 trillion won and 4.3 trillion South Korean won ($3.67 billion).
Operating profit totaled 1.48 trillion won in the third quarter of 2008.
The company, South Korea's biggest by market capitalization, estimated the consolidated sales of between 35 trillion and 37 trillion won for the third quarter. That compares with sales of 30.3 trillion won a year earlier.
The company is expected to announce its its quarterly earnings profit Oct. 30. All figures are on a consolidated basis.
Samsung didn't provide explanation for the earnings guidance and said the latest forcast may differ from actual earnings because it hasn't completed an audit.
Analysts said the recent sharp rise in the memory chip prices and improved prices for liquid-cystal displays, combined with continued firm performances in Samsung Electronics's other businesses, are buoying the company's third-quarter profits. However, they expect their earnings growth taper off in the current quarter due to strengthening local currency and seasonally higher market costs.
A poll of 13 analysts by local researcher FNGuide put Samsug's third-quarter operating
at 3.7 trillion won. The consolidated sales forcast is 36 trillion won, in line with Samsung's estimates.
" Market share really jumps on all fronts - DRAM, flast, handsets, TVs, LCD panels, " said Jay Kim, who follows Samsung for Hydudai Securities in Seoul.
Despite the news, share of the electronics giant slipped. In Seoul trading, the stock fell 2000 won to 745,000 won, though the still outperform the broader index, which fell 0.5%.
Samsung is the world's largest manufacturer of DRAM, or dynamic ransom access memory, chips, NAND flash memory chips, flatscreen televisions and liquid crystal displays. the company is the world's second-largest maker of mobile phone handsets hehind Nokia Crop.
DRAMs are used mostly in personal computers, while NAND flash chips are used in devices such as digital cameras and music players.
Samsung recorded its first net ever loss in the four quarter of 2008 as the global economic slump hit prices and demand. the company returned to profi in the first quarter of this year, though it was down sharply from the year before.
from WSJ on Oct. 7
Tuesday 6 October 2009
IPhone's entry to South Korea to test Samsung, LG
from WSJ on Oct 6
Apple Inc.'s entry in South Korean mobile phone market will likely ramp up price competition, pressuring margins at Samsung Electronics Co. and LG Electronics Co. that are already suffering from weak demand.
The entry of the IPhone in South Korea comes as both Samsung and LG have been feeling the squeeze on their margins from a global slowdown in demand for consumer electronics due to the world-wide recession.
Samsung's margin from its telecommunication division, including handsets, fell to 10% for the second quarter from 11% from a year ealier. LG's margin from the handsets fell to 11% in the quarter, from 14.4% from a year earlier.
" Since Samsung and LG don't have impressive smartphones in the pipeline, it's woule be hard to compete with IPhone," said Oh In-bum, an analyst at Dongbu Securities "IPhone's entry to Korea will have a negative impact on both companies."
Califonia-base Apple is widely expected to start selling its popular IPhone this year, after South Korean government approved last month the sale of the smartphone, which features a touch screan and multimedia capabilities such as web surfing an email.
Apple hasn't signed a deal with any telecom operator in the country and an Apple spokesman declined to comment on when the IPhone is available there. A spokesman from KT Corp., South Korea's largest telecom operator, said the company is in talks with Apple on shipment size and subsidies for the IPhone.
Samsung and LG are latecomers to the smartphone market, a segment that is expected to see shipments grow double-digit percentage this year, compared with an overall decline of sales in regular cellphones.
Globally, Samsung is the world's second-largest handset maker by shipments after Nokia Corp. with 19% of the market, while LG ranks the third, with 11%. But at home, Samsung and LG have a combined 85% of the market.
Samsung and LG have been launching similar touchscreen devices globally to compete with IPhone, since the device's U.S. debut in 2007, but sales haven't taken off partly due to weak branding and the absence of their own mobile operating systems. But they also recognize the segment's potential. Smartphones also fetch higher average selling prices,boosting margins.
Much of the impact on the local vendors are determined by Apple's pricing strategy. It is still unclear how much the IPhones will sell in Korea.
In China, the IPhone will retail for around $700, while in teh U.S it costs around $300. Samsung's smartphones sell for about 600,000won to 900,000 won ($511-$766) in the domestic market, while LG phones retal for around 700,000 won.
LG spokesman Yoon won-ill said the company see "limited impact" from IPhones given weak demand for more expensive smartphones.
At the same time, LG is beefing up its product pipeline to compete.
The company said in September that it will launch it first smartphone powered by Google Inc.'s Android platform in the fourth quarter of this year, starting in European market. It also said it would introduce a minimum of 13 new smartphones over the next 16 months that use Microsoft COrp.'s Window Mobile operating system to reinforce its standing with the brand.
" At home, demand for smarphones is expected to increase gradually, so [Samsung]is preparing to roll out new smartphone models to meet consumer needs," Samsung said. The company declined to comment specifically on how Apple will impact its business strategy andprofitability.
Apple's IPhone, which launched two years ago, has so far sold more than 26 million units world-wide in more than 80 countries, with its operating system, particularly its Safari Web browse, acknowledged by many to be a major selling point.
Apple Inc.'s entry in South Korean mobile phone market will likely ramp up price competition, pressuring margins at Samsung Electronics Co. and LG Electronics Co. that are already suffering from weak demand.
The entry of the IPhone in South Korea comes as both Samsung and LG have been feeling the squeeze on their margins from a global slowdown in demand for consumer electronics due to the world-wide recession.
Samsung's margin from its telecommunication division, including handsets, fell to 10% for the second quarter from 11% from a year ealier. LG's margin from the handsets fell to 11% in the quarter, from 14.4% from a year earlier.
" Since Samsung and LG don't have impressive smartphones in the pipeline, it's woule be hard to compete with IPhone," said Oh In-bum, an analyst at Dongbu Securities "IPhone's entry to Korea will have a negative impact on both companies."
Califonia-base Apple is widely expected to start selling its popular IPhone this year, after South Korean government approved last month the sale of the smartphone, which features a touch screan and multimedia capabilities such as web surfing an email.
Apple hasn't signed a deal with any telecom operator in the country and an Apple spokesman declined to comment on when the IPhone is available there. A spokesman from KT Corp., South Korea's largest telecom operator, said the company is in talks with Apple on shipment size and subsidies for the IPhone.
Samsung and LG are latecomers to the smartphone market, a segment that is expected to see shipments grow double-digit percentage this year, compared with an overall decline of sales in regular cellphones.
Globally, Samsung is the world's second-largest handset maker by shipments after Nokia Corp. with 19% of the market, while LG ranks the third, with 11%. But at home, Samsung and LG have a combined 85% of the market.
Samsung and LG have been launching similar touchscreen devices globally to compete with IPhone, since the device's U.S. debut in 2007, but sales haven't taken off partly due to weak branding and the absence of their own mobile operating systems. But they also recognize the segment's potential. Smartphones also fetch higher average selling prices,boosting margins.
Much of the impact on the local vendors are determined by Apple's pricing strategy. It is still unclear how much the IPhones will sell in Korea.
In China, the IPhone will retail for around $700, while in teh U.S it costs around $300. Samsung's smartphones sell for about 600,000won to 900,000 won ($511-$766) in the domestic market, while LG phones retal for around 700,000 won.
LG spokesman Yoon won-ill said the company see "limited impact" from IPhones given weak demand for more expensive smartphones.
At the same time, LG is beefing up its product pipeline to compete.
The company said in September that it will launch it first smartphone powered by Google Inc.'s Android platform in the fourth quarter of this year, starting in European market. It also said it would introduce a minimum of 13 new smartphones over the next 16 months that use Microsoft COrp.'s Window Mobile operating system to reinforce its standing with the brand.
" At home, demand for smarphones is expected to increase gradually, so [Samsung]is preparing to roll out new smartphone models to meet consumer needs," Samsung said. The company declined to comment specifically on how Apple will impact its business strategy andprofitability.
Apple's IPhone, which launched two years ago, has so far sold more than 26 million units world-wide in more than 80 countries, with its operating system, particularly its Safari Web browse, acknowledged by many to be a major selling point.
Wednesday 19 August 2009
08:55 19Aug2009 RTRS-Seoul shares seen up on U.S. gain, oil price
SEOUL, Aug 19 (Reuters) - Seoul shares may open higher on
Wednesday after gains overnight on Wall Street, boosted by
better-than-expected results from retailers, while refiners such
as SK Energy <096770.KS> may gain from firmer oil prices.
"The positive finish on Wall Street bodes well for Seoul
markets' start...but we have been seeing swings in sentiment and
stocks' moves, and investors will be keenly watching U.S. and
Chinese stock markets and their indicators," said Hwang Keum-dan,
a market analyst at Samsung Securities.
Firm gains in crude futures may weigh on airlines
including Korean Air Line <003490.KS>.
Meanwhile shares in Lotte Shopping <023530.KS> may be boosted
by a positive brokerage note from Nomura, which raised its target
price on the South Korean retailer to 410,000 won from a previous
340,000 won, while maintaining an "overweight" rating.
The Korea Composite Stock Price Index <.KS11> (KOSPI)
finished up 3.18 points at 1,550.24 points on Tuesday.
----------------------MARKET SNAPSHOT @ 2250 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 989.67 1.01% 9.940
USD/JPY 94.85 0.16% 0.150
10-YR US TSY YLD 3.5166 -- 0.000
SPOT GOLD 937.7 0.04% 0.400
US CRUDE 70.21 1.47% 1.020
DOW JONES <.DJI> 9217.94 0.90% 82.60
ASIA ADRS <.BKAS> 118.95 2.05% 2.39
-------------------------------------------------------------
Market Summary
*Wrld stks, oil gain as retail results boost morale[nN18436462]
*Wall Street regains ground; retails, tech up [nN18429926]
*Dollar, yen decline on stock advance, data [nN18436065]
*Treasuries slip as stock gains curb safety appeal [nN18432636]
STOCKS TO WATCH
HANA FINANCIAL GROUP <086790.KS>
Daiwa initiated its coverage on Hana Financial Group with a
6-month rating of "outperform" and target price of 40,300 won.
ELECTRONICS ISSUES
Japanese electronics group Sharp <6753.T> sees the slump in
sales of LCD flat-screen television largely over in Europe.
[ID:nWEA6932]
(Reporting by Jungyoun Park; Editing by Valerie Lee)
09:01 19Aug2009 RTRS-SEOUL KOSPI <.KS11> OPENS 0.31 PCT HIGHER AT 1,555.03 POINTS
09:05 19Aug2009 RTRS-Seoul shares open firm as banks, auto issues rise
SEOUL, Aug 19 (Reuters) - Seoul shares opened higher on Wednesday after gains overnight on Wall Street, with firm rises in auto issues and banks including Shinhan Financial Group <055550.KS> lending support.
The Korea Composite Stock Price Index <.KS11> (KOSPI) was up 0.29 percent at 1,554.73 points as of 0002 GMT.
(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)
10:27 19Aug2009 RTRS-Korea Hot Stocks-Aerospace engineering-related issues rally
SEOUL, Aug 19 (Reuters) - Stocks on the move on Wednesday include:
As of 0108 GMT, the main KOSPI <.KS11> was up 0.52 percent at 1,558.35 points.
The index opened 0.31 percent higher at 1,555.03 points.
**COMPLEX ENGINEERING ISSUES RISE AS ROCKET LAUNCH NEARS**
Shares in companies that are expected to benefit from South Korea's rising interest in aerospace engineering, such as Vitzrosys <054220.KQ>, a maker and developer of monitoring and control systems, rallied with South Korea's first space launch set to take place later in the afternoon.
Vitzrosys jumped 5.88 percent and Hanyang ENG <045100.KQ>, a maker of semiconductor utility systems, climbed 5.88 percent.
According to local media reports, Korean Air Line <003490.KS> and Hanwha Corp <000880.KS> were the main corporate participants in the domestic Naro-1 satellite launch project. [ID:nSEO2063]
Shares in Korean Air Line were up 2.47 percent, while Hanwha Corp rose 0.25 percent.
"The so-called aerospacoe issues are moving on theme-based investment tactics, and are riding on expectations that the companies may eventually benefit from related investments," said Kwak Joong-bo, a market analyst at Hana Daetoo Securities. "But the companies have yet to see real benefits, in terms of earnings. Caution in approach is advised."
0105 GMT
(Reporting by Jungyoun Park; Editing by Chris Lewis)
09:44 19Aug2009 RTRS-S.Korean bonds rebound on foreign investor buying
SEOUL, Aug 19 (Reuters) - South Korean treasury bond prices rebounded early on Wednesday, as foreign investors turned net buyers of debt futures after a weeks-long selling spree amid mixed signals of global economic recovery.
The yield on benchmark five-year treasury bonds fell 2 basis points to 4.95 percent while the three-year treasury bond yield dropped 4 basis points to 4.47 percent.
September treasury bond futures rose 18 ticks to 109.26 as of 0035 GMT.
(Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner)
09:25 19Aug2009 RTRS-South Korean won edges up early, eyes on stocks
SEOUL, Aug 19 (Reuters) - The South Korean won edged higher
against the dollar early on Wednesday, relieved by the rebound in
global stock markets, but gains were limited as traders kept a
careful watch on equity market trends.
The won was quoted at 1,244.4/5.1 per dollar at 0015
GMT, up from Tuesday's domestic close of 1,246.3.
Seoul's main stock market index <.KS11> rose 0.4 percent in
early trade, with foreign investors net purchasing a small amount
on the main board.
The won and other emerging-market currencies were hit hard
early this week by the global equities sell-off out of fears
about a steep correction phase setting in after sharp stock
market rallies since early this year.
0015 GMT Prev close
Won 1,244.4/5.1 1,246.3
Yen/won 13.1196/266 13.1186/322
KOSPI 1,555.84 1,550.24
(Reporting by Yoo Choonsik; Editing by Jonathan Hopfner)
10:21 19Aug2009 RTRS-SOUTH KOREA C.BANK SELLS 2-YEAR MONETARY STABILISATION BONDS AT YIELD OF 4.34 PCT
10:24 19Aug2009 RTRS-South Korea c.bank sells 2-yr MSBs at 4.34 pct
SEOUL, Aug 19 (Reuters) - Following are the results of the
South Korean central bank's auction of 2-year monetary
stabilisation bonds (MSBs) on Wednesday:
Tenor Offer Tendered Awarded Avg rate Previous
(in trillion won) (pct) (Aug 5)
2-year 2.5 2.78 2.50 4.34 4.15
(Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner)
(For full coverage, click on [ID:nNORKOR])
* Death may lead to brief warming of ties, analysts say
* Two Kims formed bond during historic summit in 2000
* North's attack on U.S.-South military drills toned down
By Jon Herskovitz
SEOUL, Aug 19 (Reuters) - North Korea said on Wednesday leader Kim Jong-il had sent condolences on the death of former South Korean President Kim Dae-jung, the latest sign of a possible easing in the chill between the rival Koreas.
Kim Dae-jung died on Tuesday at the age of 85. An extraordinary figure in South Korea's shift to democracy, he won the Nobel Peace Prize for a June 2000 summit with Kim Jong-il and efforts at reconciliation with the prickly North. [ID:nSEO10659]
"Though he passed away to our regret, the feats he performed to achieve national reconciliation and realise the desire for reunification will remain long with the nation," North Korea's KCNA news agency quoted the message as saying.
KCNA also issued a separate, single-line dispatch saying that Kim Dae-jung had died.
Analysts said Kim's death could help improve ties between the Koreas, which have soured since President Lee Myung-bak took power in the South about 18 months ago and angered the impoverished North by cutting off a steady flow of aid it had seen since the 2000 summit.
Kim Dae-jung "meant something to them and North Korea is likely to react and move in light of this news",Koh Yu-hwan of Dongguk University in Seoul said on Tuesday.
Yang Moo-jin of the University of North Korean Studies said Pyongyang would likely send a delegation that could "turn around recent hardened conditions between North and South Korea".
The North's Foreign Ministry assailed joint South Korean-U.S. military drills that started this week but in a less bellicose tone than the fiery rhetoric it had previously used.
"The DPRK (North Korea) will closely follow every movement of the U.S. and the South Korean authorities and adopt a tough measure against any provocation," KCNA quoted the spokesman as saying.
In previous criticism that underscored the persistent tensions on the troubled peninsula, North Korea had threatened to "wipe out" U.S. and South Korean forces with nuclear weapons if the drills threatened the reclusive communist state.
SMILES AND SONGS
North Korean ruler Kim met the then-South Korean president at the airport when he arrived in June 2000 in Pyongyang for what was the first meeting of the leaders of the Koreas that are technically still at war.
The two held hands, shared smiles and sang traditional songs together in a summit that calmed tensions on the troubled peninsula. [ID:nSP483947]
The meeting was the culmination of the "Sunshine Policy" that won Kim Dae-jung the 2000 Nobel Peace Prize -- his idea of prodding the North forward with the promise of incentives and reducing the strain of eventual unification through economic integration.
(For five facts on Kim, click on [ID:nSEO10695])
North Korean leader Kim had high-profile meetings this month with former U.S. President Bill Clinton, which resulted in the release of two jailed U.S. journalists, and the head of the powerful Hyundai Group, which is a major investor in the North.
That meeting helped win the release of a Hyundai worker detained since March and for calls to resume halted tourism of Southerners to the North as well as for the reunions of families separated by the 1950-53 Korean War, which ended in a ceasefire, not a peace treaty.
Analysts said the North's rare acts of conciliation may signal that it has stopped its recent round of provocations that included a May nuclear test as it looks for aid to prop up its economy that has been hit with U.N. sanctions for its defiant actions. [ID:nSEO203537]
(Additional reporting by Jack Kim; Editing by Jonathan Thatcher and Nick Macfie)
08:56 19Aug2009 RTRS-S.Korea to sharply cut FX bond sale in 2010-report
SEOUL, Aug 19 (Reuters) - South Korea plans to sharply cut its global bond sale plan for next year to $2 billion from this year's $6 billion as its dollar-funding shortage eases, a leading domestic newspaper reported on Wednesday.
The Chosun Ilbo quoted an unnamed Finance Ministry official as saying the ministry had informed a parliamentary budget committee of its plan to sell up to $2 billion worth of foreign-currency bonds during next year.
The ministry has a mandate from the parliament to sell as much as $6 billion worth of bonds abroad this year and in April raised $3 billion in a two-tranche dollar bond. [ID:nHKG264289]
The won had tumbled to an 11-year low against the dollar early this year on a severe dollar-funding squeeze. It later rebound sharply amid an easing global credit situation and South Korea's improving balance of payments.
South Korea has not said whether or when it will sell the remaining $3 billion worth of global bonds under this year's planned total of $6 billion.
The Chosun report also said the ministry was expecting the won to keep heading higher for the time being to finish this year above 1,200 per dollar, compared with about 1,250 at present, but did not provide any named source for the information.
The won is currently trading more than 10 percent below the level against the dollar seen right before the collapse of Wall Street investment bank Lehman Brothers sparked a global financial and economic crisis.
(Reporting by Yoo Choonsik; editing by Ken Wills)
SEOUL, Aug 19 (Reuters) - Seoul shares may open higher on
Wednesday after gains overnight on Wall Street, boosted by
better-than-expected results from retailers, while refiners such
as SK Energy <096770.KS> may gain from firmer oil prices.
"The positive finish on Wall Street bodes well for Seoul
markets' start...but we have been seeing swings in sentiment and
stocks' moves, and investors will be keenly watching U.S. and
Chinese stock markets and their indicators," said Hwang Keum-dan,
a market analyst at Samsung Securities.
Firm gains in crude futures
including Korean Air Line <003490.KS>.
Meanwhile shares in Lotte Shopping <023530.KS> may be boosted
by a positive brokerage note from Nomura, which raised its target
price on the South Korean retailer to 410,000 won from a previous
340,000 won, while maintaining an "overweight" rating.
The Korea Composite Stock Price Index <.KS11> (KOSPI)
finished up 3.18 points at 1,550.24 points on Tuesday.
----------------------MARKET SNAPSHOT @ 2250 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 989.67 1.01% 9.940
USD/JPY
10-YR US TSY YLD
SPOT GOLD
US CRUDE
DOW JONES <.DJI> 9217.94 0.90% 82.60
ASIA ADRS <.BKAS> 118.95 2.05% 2.39
-------------------------------------------------------------
Market Summary
*Wrld stks, oil gain as retail results boost morale[nN18436462]
*Wall Street regains ground; retails, tech up [nN18429926]
*Dollar, yen decline on stock advance, data [nN18436065]
*Treasuries slip as stock gains curb safety appeal [nN18432636]
STOCKS TO WATCH
HANA FINANCIAL GROUP <086790.KS>
Daiwa initiated its coverage on Hana Financial Group with a
6-month rating of "outperform" and target price of 40,300 won.
ELECTRONICS ISSUES
Japanese electronics group Sharp <6753.T> sees the slump in
sales of LCD flat-screen television largely over in Europe.
[ID:nWEA6932]
(Reporting by Jungyoun Park; Editing by Valerie Lee)
09:01 19Aug2009 RTRS-SEOUL KOSPI <.KS11> OPENS 0.31 PCT HIGHER AT 1,555.03 POINTS
09:05 19Aug2009 RTRS-Seoul shares open firm as banks, auto issues rise
SEOUL, Aug 19 (Reuters) - Seoul shares opened higher on Wednesday after gains overnight on Wall Street, with firm rises in auto issues and banks including Shinhan Financial Group <055550.KS> lending support.
The Korea Composite Stock Price Index <.KS11> (KOSPI) was up 0.29 percent at 1,554.73 points as of 0002 GMT.
(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)
10:27 19Aug2009 RTRS-Korea Hot Stocks-Aerospace engineering-related issues rally
SEOUL, Aug 19 (Reuters) - Stocks on the move on Wednesday include:
As of 0108 GMT, the main KOSPI <.KS11> was up 0.52 percent at 1,558.35 points.
The index opened 0.31 percent higher at 1,555.03 points.
**COMPLEX ENGINEERING ISSUES RISE AS ROCKET LAUNCH NEARS**
Shares in companies that are expected to benefit from South Korea's rising interest in aerospace engineering, such as Vitzrosys <054220.KQ>, a maker and developer of monitoring and control systems, rallied with South Korea's first space launch set to take place later in the afternoon.
Vitzrosys jumped 5.88 percent and Hanyang ENG <045100.KQ>, a maker of semiconductor utility systems, climbed 5.88 percent.
According to local media reports, Korean Air Line <003490.KS> and Hanwha Corp <000880.KS> were the main corporate participants in the domestic Naro-1 satellite launch project. [ID:nSEO2063]
Shares in Korean Air Line were up 2.47 percent, while Hanwha Corp rose 0.25 percent.
"The so-called aerospacoe issues are moving on theme-based investment tactics, and are riding on expectations that the companies may eventually benefit from related investments," said Kwak Joong-bo, a market analyst at Hana Daetoo Securities. "But the companies have yet to see real benefits, in terms of earnings. Caution in approach is advised."
0105 GMT
(Reporting by Jungyoun Park; Editing by Chris Lewis)
09:44 19Aug2009 RTRS-S.Korean bonds rebound on foreign investor buying
SEOUL, Aug 19 (Reuters) - South Korean treasury bond prices rebounded early on Wednesday, as foreign investors turned net buyers of debt futures after a weeks-long selling spree amid mixed signals of global economic recovery.
The yield on benchmark five-year treasury bonds fell 2 basis points to 4.95 percent while the three-year treasury bond yield dropped 4 basis points to 4.47 percent
September treasury bond futures
(Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner)
09:25 19Aug2009 RTRS-South Korean won edges up early, eyes on stocks
SEOUL, Aug 19 (Reuters) - The South Korean won edged higher
against the dollar early on Wednesday, relieved by the rebound in
global stock markets, but gains were limited as traders kept a
careful watch on equity market trends.
The won
GMT, up from Tuesday's domestic close of 1,246.3
Seoul's main stock market index <.KS11> rose 0.4 percent in
early trade, with foreign investors net purchasing a small amount
on the main board.
The won and other emerging-market currencies were hit hard
early this week by the global equities sell-off out of fears
about a steep correction phase setting in after sharp stock
market rallies since early this year.
0015 GMT Prev close
Won 1,244.4/5.1 1,246.3
Yen/won 13.1196/266 13.1186/322
KOSPI 1,555.84 1,550.24
(Reporting by Yoo Choonsik; Editing by Jonathan Hopfner)
10:21 19Aug2009 RTRS-SOUTH KOREA C.BANK SELLS 2-YEAR MONETARY STABILISATION BONDS AT YIELD OF 4.34 PCT
10:24 19Aug2009 RTRS-South Korea c.bank sells 2-yr MSBs at 4.34 pct
SEOUL, Aug 19 (Reuters) - Following are the results of the
South Korean central bank's auction of 2-year monetary
stabilisation bonds (MSBs) on Wednesday:
Tenor Offer Tendered Awarded Avg rate Previous
(in trillion won) (pct) (Aug 5)
2-year 2.5 2.78 2.50 4.34 4.15
(Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner)
(For full coverage, click on [ID:nNORKOR])
* Death may lead to brief warming of ties, analysts say
* Two Kims formed bond during historic summit in 2000
* North's attack on U.S.-South military drills toned down
By Jon Herskovitz
SEOUL, Aug 19 (Reuters) - North Korea said on Wednesday leader Kim Jong-il had sent condolences on the death of former South Korean President Kim Dae-jung, the latest sign of a possible easing in the chill between the rival Koreas.
Kim Dae-jung died on Tuesday at the age of 85. An extraordinary figure in South Korea's shift to democracy, he won the Nobel Peace Prize for a June 2000 summit with Kim Jong-il and efforts at reconciliation with the prickly North. [ID:nSEO10659]
"Though he passed away to our regret, the feats he performed to achieve national reconciliation and realise the desire for reunification will remain long with the nation," North Korea's KCNA news agency quoted the message as saying.
KCNA also issued a separate, single-line dispatch saying that Kim Dae-jung had died.
Analysts said Kim's death could help improve ties between the Koreas, which have soured since President Lee Myung-bak took power in the South about 18 months ago and angered the impoverished North by cutting off a steady flow of aid it had seen since the 2000 summit.
Kim Dae-jung "meant something to them and North Korea is likely to react and move in light of this news",Koh Yu-hwan of Dongguk University in Seoul said on Tuesday.
Yang Moo-jin of the University of North Korean Studies said Pyongyang would likely send a delegation that could "turn around recent hardened conditions between North and South Korea".
The North's Foreign Ministry assailed joint South Korean-U.S. military drills that started this week but in a less bellicose tone than the fiery rhetoric it had previously used.
"The DPRK (North Korea) will closely follow every movement of the U.S. and the South Korean authorities and adopt a tough measure against any provocation," KCNA quoted the spokesman as saying.
In previous criticism that underscored the persistent tensions on the troubled peninsula, North Korea had threatened to "wipe out" U.S. and South Korean forces with nuclear weapons if the drills threatened the reclusive communist state.
SMILES AND SONGS
North Korean ruler Kim met the then-South Korean president at the airport when he arrived in June 2000 in Pyongyang for what was the first meeting of the leaders of the Koreas that are technically still at war.
The two held hands, shared smiles and sang traditional songs together in a summit that calmed tensions on the troubled peninsula. [ID:nSP483947]
The meeting was the culmination of the "Sunshine Policy" that won Kim Dae-jung the 2000 Nobel Peace Prize -- his idea of prodding the North forward with the promise of incentives and reducing the strain of eventual unification through economic integration.
(For five facts on Kim, click on [ID:nSEO10695])
North Korean leader Kim had high-profile meetings this month with former U.S. President Bill Clinton, which resulted in the release of two jailed U.S. journalists, and the head of the powerful Hyundai Group, which is a major investor in the North.
That meeting helped win the release of a Hyundai worker detained since March and for calls to resume halted tourism of Southerners to the North as well as for the reunions of families separated by the 1950-53 Korean War, which ended in a ceasefire, not a peace treaty.
Analysts said the North's rare acts of conciliation may signal that it has stopped its recent round of provocations that included a May nuclear test as it looks for aid to prop up its economy that has been hit with U.N. sanctions for its defiant actions. [ID:nSEO203537]
(Additional reporting by Jack Kim; Editing by Jonathan Thatcher and Nick Macfie)
08:56 19Aug2009 RTRS-S.Korea to sharply cut FX bond sale in 2010-report
SEOUL, Aug 19 (Reuters) - South Korea plans to sharply cut its global bond sale plan for next year to $2 billion from this year's $6 billion as its dollar-funding shortage eases, a leading domestic newspaper reported on Wednesday.
The Chosun Ilbo quoted an unnamed Finance Ministry official as saying the ministry had informed a parliamentary budget committee of its plan to sell up to $2 billion worth of foreign-currency bonds during next year.
The ministry has a mandate from the parliament to sell as much as $6 billion worth of bonds abroad this year and in April raised $3 billion in a two-tranche dollar bond. [ID:nHKG264289]
The won
South Korea has not said whether or when it will sell the remaining $3 billion worth of global bonds under this year's planned total of $6 billion.
The Chosun report also said the ministry was expecting the won to keep heading higher for the time being to finish this year above 1,200 per dollar, compared with about 1,250 at present, but did not provide any named source for the information.
The won is currently trading more than 10 percent below the level against the dollar seen right before the collapse of Wall Street investment bank Lehman Brothers sparked a global financial and economic crisis.
(Reporting by Yoo Choonsik; editing by Ken Wills)
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