(Updates to mid-morning)
SEOUL, April 16 (Reuters) - Seoul stocks traded higher on
Wednesday led by technology shares after Intel Corp. (INTC.O)
affirmed its profit-margin target for 2008, reassuring investors
concerned about the outlook for the semiconductor market.
World No.2 memory chip maker Hynix Semiconductor (000660.KS)
rose 1.44 percent to 28,250 won, after Intel, one of the biggest
tech bellwethers, posted first-quarter revenue just ahead of
market consensus on Tuesday. [ID:nN15200824]
"Intel's better-than-expected revenue and firm margins
outlook have boosted appetite for shares," said Bae Sung-young, a
market analyst at Daishin Securities.
The Korea Composite Stock Price Index was up 1.1 percent to
1,760.50 points as of 0148 GMT, with upward momentum fuelled by
local institutional investors, buying a net 137 billion won.
"However gains will not be significant as more uncertainties
lie ahead, with major U.S. banks set to report their earnings,
and more economic data from the U.S. and China expected later
this week," Bae added.
LG Electronics (066570.KS), which is expected to report
strong earnings on Wednesday, rose 0.75 percent to 134,000 won,
after gaining as much as 3 percent earlier in the session.
LG is seen posting January-March net profit of 470 billion
won ($476.4 million), against a loss of 122.6 billion won a year
earlier, buoyed by solid results at its mobile phone unit and
flat-screen joint venture. [ID:nSEO139654]
Also, Fitch Ratings late on Tuesday upgraded LG's long-term
foreign currency rating to 'BBB' from 'BBB-', citing better
earnings and ongoing financial improvement. [ID:nWLB9837]
"Word is getting around market that LG will release fantastic
numbers today, thanks to the weaker won currency and popularity
of its handsets," said Steve Lee, an analyst at Goodmorning
Shinhan Securities.
Financials such as Kookmin Bank 060000.KS also advanced
after several U.S. regional banks reported stronger-than-expected
quarterly results, boosting their Wall Street peers overnight and
soothing persistent credit fears.
Kookmin Bank advanced 0.46 percent to 66,200 won and Shinhan
Financial Group (055550.KS) went up 1.46 percent to 55,500 won.
However Hyundai Motor (005380.KS) fell 1.24 percent to 79,500
won after South Korea's top auto maker said on Wednesday it plans
to recall some 390,000 Sonata sedans in the United States to fix
a defect in the cars' air bag systems.[ID:nSEO191300]
Shipbuilders also rose across the board on expectations of
solid first quarter earnings, which were boosted by increase in
ship orders and an improved product mix, analysts said.
Samsung Heavy Industries Co. (010140.KS) rose 1.48 percent to
34,250 won after the world's second-biggest shipbuilder said on
Wednesday it had won a 451.8 billion won ($458 million) order for
a liquefied natural gas producer ship.[Id:nSEL000046]
"While first quarter earnings should come in strong, I am
worried about the second quarter, when steel price hikes will be
reflected in earnings," said Kim Yong-soo, an analyst at SK
Securities.
Daewoo Shipbuilding & Marine Engineering (042660.KS) rose 6
percent to 43,100 won.
(Reporting by Park Jung-youn; Editing by Keiron Henderson)
