Korea Gas dollar bonds sell out

[THE INVESTOR] Korea Gas, the state-run gas supplier, announced on July 12 that its US dollar-denominated bonds were sold out. The company issued five-year bonds to raise US$ 500 million, and 10-year bonds to raise US$ 400 million. The five-year bonds were rated 0.9 percentage points higher than the rate on 5-year US Treasuries, and the 10-year bonds were rated 0.9 percentage points higher than US Treasuries with same maturity. By Choi He-suk (cheesuk@heraldcorp.com)

July 13, 2016

[EQUITIES] Mirae Asset forecasts improved earnings for LG Hausys in H2

[THE INVESTOR] Mirae Asset Securities on July 13 issued a report saying it expects construction materials producer LG Hausys’ earnings to improve in the latter half of this year.During the second quarter, the firm’s sales and operating profit was estimated at 755.6 billion won (US$656.54 million) and 50.9 billion won, respectively. The figures are in line with market consensus. The report said a B2B construction materials market expansion this year is expected to continue bolstering the firm’s g

July 13, 2016

[EQUITIES] Yuanta Securities forecasts Samsung Electronics’ 2017 operating profit at W31tr

[THE INVESTOR] Yuanta Securities said in a July 13 report that Samsung Electronics is likely to maintain strong growth next year. Its estimates showed the world’s largest tech company posting an annual operating profit of 31 trillion won (US$ 26.93 billion) on a consolidated basis in 2017. The release of the next iPhone from Samsung’s global rival Apple may pose a risk in the latter half of 2017, the report said, but expected solid growth in semiconductor chips and displays will offset it.In the

July 13, 2016

[EQUITIES]SK Securities sees LG Display performance rebounding in Q3

[THE INVESTOR] SK Securities said LG Display -- the world’s No.1 producer of large-sized LCD-panels -- is expected to see its third-quarter earnings rebound following significant declines in the second quarter.“A fall in liquid-crystal display panel supply, combined with reduced production from Samsung Display, is likely to push up panel prices in the third quarter,” the brokerage said in a report on July 13. Its estimates showed LG Display’s third-quarter sales at 6.79 trillion won (US$5.89 bil

July 13, 2016

Seoul stocks open higher on risk-taking sentiment

South Korean shares were off to a strong start Wednesday, as traders were increasingly in favor of risky assets.The benchmark Korea Composite Stock Price Index jumped 15.35 points, or 0.77 percent, to 2,006.58 in the first 15 minutes of trading.The global market has virtually dispelled Brexit fears, and the U.S. economy is gaining renewed momentum. Japan is preparing for another round of stimulus measures, further whetting investors' appetite.In New York, the Dow Jones industrial average rose 12

July 13, 2016

Brokerages expand investment banking on increased M&A activity

[THE INVESTOR] Investment banking at local brokerages grew more than 41 percent from 2013 to 2015, with volume reaching 158.5 trillion won (US$137.65 million) last year, according to a local think tank. A recent rise in merger and acquisition deals involving South Korean firms was cited as one of the main drivers behind the growth. The Korea ExchangeIn 2013, brokerages engaged in 112.17 trillion won worth of investment banking, but the figure expanded by 41.3 percent, said the Korea Capital Mark

July 13, 2016

LVMH to invest $50m in K-beauty firm

[THE INVESTOR] L Capital, an affiliate of the world’s largest luxury brand group LVMH, will invest $50 million in CLIO, a Korean cosmetics company that specializes in makeup.The K-beauty company aims to go public by the end of this year and will issue redeemable convertible preference shares which the investment company will take over. An official agreement for this pre-IPO investment will be signed next week, according to media reports.CLIO’s sales surged to 107 billion won ($93.07 million) in

July 12, 2016

Korea Asset in Trust to float shares on July 13

[THE INVESTOR] Real estate trust company Korea Asset in Trust has gained the final approval for listing on the main bourse, Korea Exchange said on July 11. Korea Asset In Trust is set to go public on Korea’s benchmark KOSPI on July 13 with an IPO price of 10,300 won (US$8.97) per share.Established in 2001, KAIT is the market leader in real estate trust companies in Korea, which posted 834 billion won in operating income and 36.3 billion won in net profit last year. The company’s affiliates inclu

July 12, 2016

Foreign investors scoop up software stocks on upbeat Q2 earnings outlook

[THE INVESTOR] As investors went into risk-aversion mode, software firms are increasingly becoming their safe havens due to low price volatility and analysts’ optimistic forecasts on their earnings. According to market analysis provider FnGuide, foreign investors scooped up 600.5 billion won ($521 million) worth of local software shares since May this year. Leading the pack was Naver, South Korea’s No. 1 Internet portal, with 425.3 billion won, followed by Com2uS at 112.5 billion won, Samsung SD

July 12, 2016

Seoul stocks end higher on positive outlooks

Korean stocks ended higher Tuesday as foreign investors continued their buying spree following overnight gains on Wall Street where the main equity indices rallied on increased hiring.The benchmark KOSPI closed at 1,991.23, up 0.14 percent, spurred by a bull market on Wall Street as Brexit concerns moved to the background. Manufacturing expansion in the eurozone, led by Germany, boosted investor confidence with Germany’s purchasing manager’s index climbing to a 28-month high of 54.5 last month.T

July 12, 2016

Hyundai Investment Securities projects 26.6% decline in Hyundai Wia’s Q2 earnings

[THE INVESTOR] HMC Investment Securities has forecast that machinery maker Hyundai Wia will suffer a 26.6 percent decrease in its second quarter operating profit at 97.4 billion won (US$ 84.59 million). Sales are also expected to decline, by 1.1 percent to 1.98 trillion won, the brokerage said. Both figures are below market estimates.However, Hyundai Investment said that sales would recover in the latter half of the year. The brokerage lowered its target price on Hyundai Wia shares to 130,000 wo

July 12, 2016

Korean shares edge up on continued foreign buying

South Korean shares finished marginally higher on Tuesday, as foreigners continued to scoop up stocks amid an eased risk-off mood. The South Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index gained 2.69 points, or 0.14 percent, to 1,991.23.Trading volume came to 427.4 million shares worth 4.4 trillion won ($3.8 billion), with gainers outnumbering losers 413 to 368.Foreigners net-purchased 192 billion won worth of shares, while individuals and institutional i

July 12, 2016

Korea to expand participation in EBRD projects

South Korea and the European Bank for Reconstruction and Development agreed on Tuesday to help the country's companies participate in more infrastructure construction projects in eastern Europe, the finance ministry here said.Finance Minister Yoo Il-ho had a meeting with EBRD President Suma Chakrabarti in Seoul to discuss ways to bolster economic cooperation between South Korea and the EBRD, according to the Ministry of Strategy and Finance.Yoo asked Chakrabarti to give South Korean companies mo

July 12, 2016

Earnings of Samsung Electro to miss expectations in Q2

[THE INVESTOR] Samsung Electro-Mechanics ’ earnings will likely miss market expectations due to temporary costs caused mainly by a series of business restructuring and layoffs in recent months, according to a market report on July 12. Hana Financial Investment said in its recent report that the electronic components company is expected to post 17.8 billion won ($15.50 million) in operating profit and 1.56 trillion won in sales in the second quarter, down from 42.9 billion won and 1.6 trillion wo

July 12, 2016

Korea collects W19tr more taxes

The South Korean government collected 19 trillion won ($16.6 billion) more taxes from January to May this year, compared to the same period a year ago, despite an economic slowdown, according to a monthly fiscal report by the Ministry of Strategy and Finance on Tuesday.The government’s tax revenue amounted to 112.7 trillion won in the five months, up 19 trillion won from a year earlier, with its tax collection rate reaching 50.6 percent.The report said that an increase in income tax filings by s

July 12, 2016

Bond specialists expect no change in Korea's base rate

[THE INVESTOR] South Korean bond market experts expect the Bank of Korea to keep the benchmark rate unchanged this month, a survey showed on July 12. A survey conducted by the Korea Financial Investment Association showed that 91.2 percent of bond market specialists expect the 1.25 percent rate to be unchanged at the upcoming Monetary Policy Committee meeting.The committee is set to convene on July 14. BOK governor Lee Ju-yeolThe association said that the central bank is likely to keep the rate

July 12, 2016

Seoul shares trade almost flat in late morning trade

South Korean shares managed to stay in positive terrain late Tuesday morning on cautious optimism about the U.S. economy and Japan's move toward a new stimulus package.The benchmark Korea Composite Stock Price Index rose 2.1 points, or 0.11 percent, to 1,990.64 as of 11:20 a.m.The market was apparently encouraged by strong U.S. job data and Japanese Prime Minister Shinzo Abe's call for a new round of fiscal stimulus spending. The KOSPI remained in a tight range as its gains were limited amid geo

July 12, 2016

Hyundai Merchant to complete debt-for-equity swap this month

Financially troubled Hyundai Merchant Marine Co. proposes to sell stocks worth 2.49 trillion won ($2.16 billion) this month, which includes 1.9 trillion won worth of debt-for-equity swap, industry sources said Tuesday.According to the sources, Hyundai Merchant, the country's No. 2 shipping line, is seeking to sell stocks at 8,890 won per share to creditors, bondholders, owners of chartered ships and even retail investors this month.Of the proposed amount, some 1.9 trillion won, or 76 percent, is

July 12, 2016

[EQUITIES] Shinhan Investment forecasts LG Life Sciences’ Q2 earnings to nearly double

[THE INVESTOR] Shinhan Investment on July 12 said it expects LG Life Sciences to post a 99.4 percent increase on-year in its second-quarter operating profit to reach 6.9 billion won (US$ 5.99 million).The projections are higher than the market consensus of 5.9 billion won.Shinhan said robust sales of both existing and new products will be the driving factors. Quarterly sales are consequently expected to rise 15.4 percent to reach 119.6 billion won in line with analysts’ forecasts. By Kim Ji-hyun

July 12, 2016

[EQUITIES] Yuanta Securities forecasts Kolon Industries’ earnings to double in 2016

[THE INVESTOR] Yuanta Securities forecast that industrial materials maker Kolon Industries’ earnings would double this year on eased legal woes. The brokerage said this year’s operating profit would reach 336 billion won (US$ 291.81 million), up from the 168.8 billion posted in 2014. “Kolon Industries had seen its corporate value deteriorate from 2012 to 2015 due to a lengthy legal battle with US-based Dupon, but the situation is now over,” the report said. Kolon settled the case in May 2015. Ko

July 12, 2016