Top Financial News
Tue, 19 Sep 2000, 11:24pm EDT
Asian Stocks: Korea Surges, Led by Samsung; Japan's Fujitsu Up
By Heejin Koo
Seoul, Sept. 20 (Bloomberg) -- Korean stocks surged, snapping a nine-day decline, as Samsung Electronics Co. and other chipmakers tracked gains by Intel Corp. and Advanced Micro Devices Inc. after Banc of America Securities recommended buying both stocks.
The benchmark Kospi index surged 31.30, or 5.5 percent, to 602.47, reversing a nine-day, 17 percent decline as Ford Motor Co. pulled out of a bid for Daewoo Motor Co. last week. The over-the- counter Kosdaq snapped a four-day fall and gained 4.2 percent to 87.73. Intel and other computer shares helped the U.S. Nasdaq Composite Index post its biggest gain since June 19.
``Foreign investors are buying chipmakers such as Samsung Electronics again after seeing gains on Nasdaq market,'' said Kim Joon Kie, a strategist at SK Securities Co. in Seoul. ``Although concerns about the delayed Daewoo Motor Co. sale still exist, recent declines in the Korean stock market was too steep and too fast.''
Chipmakers also led gains in other markets across Asia. Japan's Nikkei 225 stock average rose 1.1 percent, led by Fujitsu Ltd. on optimism there's still strength in chip demand. Taiwan's TWSE Index rose 0.7 percent, led by Taiwan Semiconductor Manufacturing Co., after investors said the market's fall to an 18- month low yesterday provided a short-term buying opportunity.
Korea's Samsung Electronics, the world's largest computer memory chipmaker, gained 11 percent to 230,500. Investors bet a rating upgrade of Intel stock by Banc of America's Richard Whittington will help ease concerns that demand for the products would not meet supply. Whittington, who last week cut his ratings of Intel Corp. and Advanced Micro Devices Inc. to ``market perform'' from ``strong buy,'' reversed that decision, saying industry data showed him Intel was likely to meet customer demand. He also upgraded AMD.
Samsung Electronics' 14-day relative strength measure, which is derived by averaging out daily gains and daily losses over a set period, stood at 26 on Tuesday, below the maximum of 30 that indicates the stock is poised to rise.
The Kospi's still down 41 percent this year.
Hyundai Electronics Industries Co., the second-largest memory chipmaker and Samsung's biggest rival, also rose 11 percent to 16,550 won.
Other computer-related shares also rose, tracking the computer-laden Nasdaq. Trigem Computer Inc., which had the third best-selling personal computer in the U.S. retail stores last year, gained 10 percent to 14,050. Anam Semiconductor Inc., which makes semiconductor-related parts, gained 7.5 percent to 8,170.
Among other stocks, Saehan Media Corp. rose 7.7 percent to 1,740 won after creditors agreed to swap 75 billion won of debt for equity to keep the maker of video and audiotapes and compact discs in business. Hanvit Bank and other banks also agreed to provide 100 billion won to help revive the unit of insolvent Saehan Group, said Kim Kil In, a Hanvit spokesman.
H&CB gained 6.2 percent to 22,250 won after Korea's largest mortgage lender said it expects to exceed this year's $530 million profit target as customers leave rival banks, boosting deposits and loan demand more than expected.
Japan
Japan's Nikkei 225 stock average rose 169.25 to 16,293.44. The broad Topix index advanced 0.9 percent to 1,504.20. Fujitsu rose 1.6 percent to 2,850 yen, while Toshiba Corp. rose 1.3 percent to 961 yen.
Computer-related shares such as Kyocera Corp. and Sony Corp., after the Nasdaq's gain. Kyocera, the world's largest maker of ceramic packaging used to protect finished microchips, led Nikkei gainers, advancing 3.5 percent to 18,860 yen. Sony, the maker of the Vaio computer and PlayStation 2 game machine, gained 2.1 percent to 12,090 yen.
Mitsubishi Electric Corp. rose 3.7 percent to 916. The Nihon Keizai newspaper said Japan's No. 5 chipmaker is likely to report group operating profit of 190 billion yen ($1.7 billion) for the year ending March 31, 2.4 times the year before, thanks to rising sales of semiconductors used in mobile phones.
``The strength in Nasdaq's rebound will be passed on to technology stocks in Japan,'' said Teruhisa Ishikawa, a deputy general manager at Izumi Securities Co.'s equity division. Also, ``Mitsubishi Electric came up with some good earnings and that will provide an incentive to buy its shares.''
Taiwan
Taiwan's TWSE Index rose 44.11 to 679.01. Chipmakers rose after investors decided their shares are cheap compared to their global counterparts. Taiwan Semiconductor Manufacturing Co. trades at 23 times 2000 earnings, while Intel Corp., the world's biggest chipmaker, trades at 35 times.
TSMC, the world's biggest chipmaker on a contract basis and the island's biggest company by market value, rose 1.8 percent to NT$115.00. Winbond Electronics Corp., a memory chipmaker and a maker of chips on a contract basis, rose 4 percent to NT$64.50. Winbond trades at 15 times 2000 earnings.
``The big growth stories in Taiwan are the main export companies, the semiconductor shares,'' said Jan Lee, who helps manage more than $1 billion in Asian investments at Bayerische Hypo-und Vereinsbank AG in Singapore.
The passing of a bill by the U.S. Senate which China permanent normal trade relations is contributing ``to a more positive tone across Asia,'' Lee said.
Acer Inc. rose 5.4 percent to NT$35.30. Taiwan's biggest personal computer maker has factories in China and may benefit from improved access to global markets now that China has been given permanent trading by the U.S.
Singapore
Singapore's Straits Times Index fell 0.3 percent to 2008.20. Some large value stocks that are seen as proxies for the economy extended losses on concern rising oil prices may curb demand and economic growth, and accelerate inflation, hurting company earnings.
Singapore Press Holdings Ltd., the island's dominant newspaper publisher, shed 1.5 percent to S$27.00. City Developments, the largest publicly traded developer on the exchange, lost 2.5 percent to S$7.95.
Leaving the market mixed, Chartered Semiconductor Manufacturing, the world's No. 3 maker of customized chips, rose 4 percent to S$12.90. Venture Manufacturing Ltd. rose 1.1 percent to S$18.2 0. |
