Seoul, Oct. 10 (Bloomberg) -- Korean stocks fell, led by Hyundai Electronics Industries Co. and Samsung Electronics Co.
after Goldman, Sachs & Co. downgrade the two chipmakers.
The spot price for the industry standard 64-megabit dynamic random access memory chip was steady for the last two
weeks at $6.18, a seven-month low. The Philadelphia Stock Exchange Semiconductor Index, which international investors
track as a benchmark to global semiconductor companies, fell for a third day, down 1.7 percent to 785.96, its lowest level
since January.
The Kospi fell 4.5, or 0.8 percent, to 584.68. Decliners outnumbered gainers 446 to 352 with 69 shares unchanged. The
over- the-counter Kosdaq fell 1.20, or 1.3 percent, to 92.35.
``Chip prices are showing no signs of a recovery and investors are worried that profit will be lower than expected,'' said
Keum Dae Ki, a fund manager at Dongwon Securities Co., who manages 30 billion won ($27 million).
The following is a list of companies whose shares are active. The stock symbol is in parentheses after the company name.
Semiconductors-related companies, such as Hyundai Electronics Industries Co. (0066 KS <Equity>) and Samsung
Electronics Co. (0593 KS <Equity>) fell after Goldman, Sachs & Co. downgraded the chipmakers. Samsung, the world's
largest memory chipmaker, was cut to ``market perform'' from ``recommend list'' by analysts Douglas Lee and Winnie
Hwang. The stock fell 500 won, or 0.3 percent, to 184,000. Hyundai Electronics, the second-largest chipmaker, lost 400
won, or 2.7 percent, to 14,400. It was downgraded to ``market perform'' from ``trading buy.''
SK Telecom Co. (1767 KS <Equity>) fell 3,000 won, or 1.2 percent, to 253,000 on concern that the government is about to
take steps to force it to choose CDMA2000 (code division multiple access) technology for new mobile phone services, a
choice which would hurt its chances of securing an investment from Japan's NTT DoCoMo Inc. which is promoting the
rival WCDMA (wideband CDMA) technology. Minister of Information and Communication, Ahn Byung Yub, will hold a
press briefing at 5 p.m. local time today.
Daewoo Securities Co. (0680 KS <Equity>), Korea's third- largest brokerage by market share, gained 120 won, or 1.4
percent, to 8,640 after the company said its net profit will rise to 68 billion won in the three months to September from 63
billion win in the previous quarter. The brokerage also expects to disclose possible buyers as early as this week, as it plans to
sell as much as 25 percent of its shares.
Dong-Ah Construction Co. (0028 KS <Equity>) jumped 75 won, 6.7 percent, to 1,200. The nation's second-largest
contractor said it is cutting about 1,500 jobs, or 39 percent of its workforce and sell assets worth 50 billion won to try and
stay afloat. The contractor has been struggling to improve its finances since 1998 and is currently under a creditors-led debt
repayment program.
Kosdaq Shares
Miju Corp. (1506 KS <Equity) shares are suspended from trading for three days after the Seoul District Court refused the
contractor's request for receivership. Miju shares yesterday lost 320 won, or 8.9 percent, to 3,260, a year low.
Samil Co. (3228 KS <Equity>) rose by its 12 percent daily limit for a seventh day to 21,650, after the trucking services
provider said it will have a five-for-one stock split.
Oct/09/2000 22:49 ET
For more stories from Bloomberg News, click here.
(C) Copyright 2000 Bloomberg L.P.
Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior
written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News.
The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not
guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale
of any securities or commodities.(C) Copyright 2000 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg
Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of
Bloomberg L.P. |
