Asian Stocks: Korea Falls, Led By Samsung Electronics on Report
quote.bloomberg.com
By Renee Kim
Seoul, Jan. 8 (Bloomberg) -- Korea's Kospi index fell, led by Samsung Electronics Co. on a report the government asked the memory chipmaker to consider buying its cash-strapped competitor, Hyundai Electronics Industries Co.
The Kospi lost 3.04, or 0.5 percent, to 577.81, after completing a 15 percent gain last week.
Samsung Electronics chief executive officer, Yun Jong Yong, reportedly declined the suggestion, according to the Maeil Business Newspaper. Hyundai Electronics shares gained on the report, limiting losses in the key index.
``The possible purchase is definitely good news for Hyundai Electronics, if Samsung Electronics helps Hyundai solve its cash problem,'' said Kim Joo Hyeong, a strategist at Tong Yang Securities Co.
In other markets, Australia's S&P/ASX200 Index fell 1.3 percent as News Corp., on concern the U.S. economic slowdown will hurt its advertising revenue. New Zealand's Top 40 stock index fell 0.5 percent as investors sold Fletcher Challenge Ltd.'s energy division on concern the rising New Zealand dollar will trim the value of Royal Dutch/Shell Group's takeover offer for the business. Japan's financial markets are closed for a public holiday.
Samsung Electronics, the biggest chipmaker, fell 1.3 percent to 192,500 won after Maeil Business Newspaper reported that the Korean government wants Samsung to consider buying Hyundai Electronics Industries Co., which has 951 billion won of corporate bonds due in the first three months of this year. Hyundai Electronics rose 8.5 percent to 6530 won, limiting losses on the index.
Kookmin Bank fell 2.4 percent to 18,200 won as investors bet its recent gains were overdone. The 14-day relative strength measure for Kookmin Bank, a moving average based on whether the index rose or fell, was at 73.58 at last Friday's close.
Regent Merchant Bank jumped by its 15 percent daily limit to 655 won. U.S. investor Wilbur Ross plans to provide fresh capital to the cash-strapped lender before it resumes operations on March 23, the Seoul Economic Daily said. Regent Merchant Bank, devastated by a run on deposits, asked the government last month to freeze its operations because it couldn't pay 12 billion won ($10 million) of debt.
Australia
Australia's S&P/ASX200 Index fell 41.60, to 3258.60. News Corp., which makes about three-quarters of its revenue in the U.S., posted its biggest one-day decline in two weeks on concern the U.S. economic slowdown will hurt its advertising revenue. Many analysts are forecasting growth rates of about 3 percent for the U.S. this year, slowing from growth greater than 5 percent last year. That's likely to crimp the earnings of News Corp., which fell 4.4 percent to A$15.70.
``It may take a bit longer before we actually see any higher levels on (News) given the uncertainty about the sector,'' said Winston Sammut, who helps manage A$1.5 billion ($857 million) in investments at Ausbil Dexia Ltd.
Foster's Brewing Group Ltd. rose 1.7 percent to A$4.82 after the Observer reported, without citing sources, that Diageo Plc, the world's largest liquor company, may bid 4 billion pounds ($6 billion) for Australia's biggest beer maker.
The acquisition would add the Fosters brand to Diageo's Guinness beer label, and give the London-based company new wine businesses. Diageo Chief Executive Paul Walsh is interested in buying wine businesses after agreeing to buy Seagram distillers together with Pernod Ricard SA last month, the paper reported. A spokesman for Foster's declined to comment on the report.
New Zealand
New Zealand's Top 40 stock index fell 10.11 to 1904.9, its first decline in three days. Fletcher Challenge Ltd.'s energy division led declining stocks, sliding 2.6 percent to NZ$8.00.
The nation's largest oil and gas producer fell after its 11 percent owned Capstone Turbine Corp. fell 3.9 percent Friday. That increases the value of Royal Dutch/Shell Group's takeover offer for Fletcher Energy, under which shareholders receive Capstone shares.
Also weighing on the stock, New Zealand's dollar has gained 12.8 percent the past three months, making it the best-performing of 17 major currencies.
When first announced in October, Shell's $1.6 billion offer and an accompanying share distribution was worth about NZ$11.20 a share to Fletcher energy shareholders. Today, the offer is worth about NZ$8.10, as the rising New Zealand dollar trims the value of Shell's cash offer as well as the value of shares of U.S.-based generator maker Capstone. |
