W47tr wiped out from Korean stock market on Brexit vote

[THE INVESTOR] Over 47 trillion won (US$40 billion) has been erased from the Korean stock market as Britain voted to leave the European Union on June 24. The combined market capitalization on the main KOSPI and tech-heavy KOSDAQ markets fell by 47.44 trillion won to 1,420.32 trillion won from a session earlier. It is the biggest drop since Nov. 10, 2011, when the market cap plunged by 57.22 trillion won. Market heavyweight Samsung Electronics plunged 2.1 percent. Hyundai Mobis fell 2.27 percent

June 24, 2016

Korea Asset In Trust to go public in July

[THE INVESTOR] Real estate trust company Korea Asset In Trust is set to go public on Korea’s benchmark KOSPI on July 13. “Through the initial public offering, the company will go beyond real estate trust business and become the No.1 real estate and finance company,” Kim Kyu-chul head of KAIT said at a press conference in Yeouido, Seoul, on June 24. Established in 2001, KAIT is the market leader in real estate trust companies in Korea. In the first quarter this year, the company recorded operatin

June 24, 2016

KOSPI to plunge below 1800 points on Brexit: analysts

[THE INVESTOR] Analysts warned Britain’s vote to leave the European Union may further dampen Korean stock financial markets as panic gripped investors. On June 24, the country’s benchmark KOSPI shed 61.47 points, or 3.09 percent, to 1,925.24. Sidecar kicked in following the secondary KOSDAQ’s 6-percent plunge. Shocked investors dumped pounds, leading the value of sterling to slump to a 31-year low on currency markets. Other Asian markets including Japan’s Nikkei finished the day with big losses.

June 24, 2016

[ANALYST REPORT] SK Hynix: Easing supply glut

2Q estimates: sales of W3.76tr (+2.1% QoQ), OP of W445bn (-21.6% QoQ) Rebounding indicators, earnings to improve QoQ in 3Q ¨ Retain BUY for target price of W38,0002Q estimates: sales W3.76tr (+2.1% QoQ), operating profit W445bn (-21.6% QoQ)SK Hynix is forecast to post 2Q sales of W3.76tr (+2.1% QoQ, -18.9% YoY) and operating profit of W445bn (-21.6% QoQ, -67.7% YoY). We expect bit growth of 13% and ASP drop of 10%. Earnings should bottom out in 2Q. We expect operating profit of W549bn (+23.5% Qo

June 24, 2016

[ANALYST REPORT] KAI: Ample momentum in store for 2H

We now believe KAI is highly likely to win the bid for both of the major projects set to determine its growth potential, i.e., the aircraft maintenance, repair, and overhaul (MRO) service project in Korea and the US Air Force‘s T-X project. We also expect marked HoH improvement in its new order intake in 2H16, given: 1) the scheduled receipts of new orders by both the defense and aircraft parts divisions; and 2) likely additional exports of finished aircraft. With KAI forecast to report relative

June 24, 2016

Seoul stocks open higher on hopes UK will remain in EU

[THE INVESTOR] South Korean shares opened higher on June 24 as the first poll after the Brexit vote on June 23 showed signs of Britain remaining in the European Union. The benchmark Korea Composite Stock Price Index soared 8.68 points, or 0.44 percent, to 1,995.39 during the first 15 minutes of trading.South Korean shares opened higher on June 24 as initial poll results showed Britain may stay with the EU. Lee Sang-sub/The InvesterAll eyes are on the outcome of the Brexit poll due out at around

June 24, 2016

POSCO’s Q2 operating profit to miss expectations: analyst

[THE INVESTOR] NH Investment & Securities has maintained a buy rating on POSCO and kept the price target of 300,000 won (US$ 261.50) on projection that the firm will continue its earnings improvement due to the increase in steel prices. “POSCO’s second-quarter sales will meet expectations but its operating income will fall shy,” analyst Byun Jong-man said.He expects the steelmaker’s consolidated sale for the second quarter to decrease 8.3 percent on year to 13.92 trillion won and its operating p

June 24, 2016

BioLeaders to go public in July

[THE INVESTOR] Korean pharma company BioLeaders will list on the secondary bourse KOSDAQ on July 7.Established in 1999, the company develops drugs for immune disorders and other incurable diseases. CEOs of BioLeaders: Sung Moon-hee (left) and Kim Sang-sukPrior to listing on the tech-heavy KOSDAQ, BioLeaders was traded on KONEX -- a securities exchange exlusively for small and medium enterprises and venture companies. It will issue 1.2 million shares within the range of 11,000 won (US$9.5) to 15,

June 23, 2016