April 15, 2013 / 12:35 AM / in 5 years

KOREA HOT STOCKS-Hyundai Hysco dives on earnings jitters

SEOUL, April 15 (Reuters) - South Korea’s main KOSPI share index was down 0.7 percent to 1,911.44 points as of 0209 GMT.

Stocks on the move on Monday include:


Hyundai Hysco, an automotive steel supplier for Hyundai Motor, dived as much as 7.7 percent after a local brokerage downgraded the stock to “hold” from “buy” and cut its target price by 35 percent to 31,000 won, citing deteriorating profit.

Woori Investment & Securities expected Hyundai Hysco to post a 37 percent drop in operating profit for the January to March period from the previous quarter, hurt by cuts in automotive steel prices from March.

Hyundai Hysco shares fell to 27,500 Korean won ($24.35) per share on Monday, the lowest level in more than two years, and have slumped nearly 40 percent this year.


Shares in Korea Zinc, a South Korean maker of non-ferrous metals including gold and silver, slumped over 11 percent after major commodity prices fell sharply on Friday, hit by weak U.S. data and a plan for Cyprus to sell gold reserves.

U.S. silver futures for May delivery tumbled more than 6 percent to around $24.61 an ounce on Monday, its weakest since November 2010, after gold made a steep 5 percent decline on Friday, its biggest drop since December 2008.

Korea Zinc generates 48 percent of its revenue from silver and 7.4 percent from gold.


Shares in Mando Corp tumbled by the daily limit of 15 percent, after the auto supplier announced a plan to support its loss-making sister company Halla Engineering & Construction.

Mando said on Friday it will spend 378.6 billion Korean won ($335.26 million) to buy new shares issued by its unit Meister. Meister also said it will inject 338.5 billion won into Halla Engineering & Construction by participating in a rights offering by the builder.

Nam Kyung-moon, an analyst at KTB Investment & Securities, downgraded Mando stocks to “suspended” from “buy”, saying the financial risks of Halla Engineering & Construction is translating into Mando.

Shares in Halla Engineering & Construction firmed 3 percent. ($1 = 1129.2750 Korean won) (Reporting by Hyunjoo Jin; Editing by Jijo Jacob and Anupama Dwivedi)

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