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To: DJBEINO who wrote (2369)	1/19/1998 1:10:00 PM
From: DJBEINO	Respond to of 9582

SKorean chipmakers higher, Hyundai Electronics sees heavy trade AFX, Sunday, January 18, 1998 at 20:16 SEOUL (AFX-ASIA) - Chipmakers were generally higher in a firmer market, with Hyundai Electronics seeing heavy trade amid expectations of an increase in 16M DRAM prices, dealers said. At 10:00 am, Hyundai Electronics was up 2,000 won at 29,600 on volume of 486,850 shares. The rebound in the price of 16M DRAM chips, which started in the middle of last week, is expected to underpin a modest recovery in share prices of the semiconductor sector in the near-term, analysts said. They added that the prolonged slide in the chip price had affected the earnings of semiconductor leaders for some time and on the movement of their share prices, analysts said. "The recent bottom-out of the 16M DRAM price, together with the prolonged fall of the yen (against the dollar) will be a positive for the sector, but its impact on earnings will be much weaker than it used to be," said one analyst at a mid-sized securities house. "So, even if the bottom-out of the 16M DRAM price will provide some positive incentives to the sector, participants will eventually encouter difficulties in continuing to buy the entire sector's shares." This analyst said the 16M DRAM price is likely to be steady in the first quarter to March after rebounding to near the 4-usd level, but it may restart moving weakly in the second quarter when South Korea's chipmakers boost production of 16M DRAMs. "In other words, the falling trend of the 16M DRAM price just took a breather," the analyst said. Further, "the prospect for the price of 64M DRAM chips will play a more important role in determinating prospects for the share prices of semiconductor leaders," he said. "In this respect, NEC is seen to be leading 64M DRAM production, followed by Toshiba, while Mitsubishi Electric is doing fine and Hitachi is already lagging its rivals." Samsung Electronics was up 3,700 at 69,800 on 136,510 shares. LG Semicon was up 1,100 at 29,300 on 262,220 shares. The composite index was up 16.01 points at 511.92 on 36.2 mln shares. The firmer prices seen for chips are proving positive for the stocks amid generally improved sentiment in the market, dealers said.