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Tuesday May 8, 9:46 AMSeoul shares hit record as Hyundai Heavy soarsSEOUL, May 8 (Reuters) - Seoul shares powered to their latest record on Tuesday, further approaching the key 1,600-point level after Hyundai Heavy surged after surprisingly robust quarterly results and sparked a broad rally in the shipbuilding sector.Flat-screen maker LG.Philips LCD jumped 3.38 percent to 41,250 won as analysts bet the loss-making company would break even in the second quarter thanks to fast rebounding panel prices. But broader gains were limited after the KOSPI hit a relative strength index of 79 by Monday, above the 70-point level at which a share or index is seen by some as technically overbought. "Investors are upgrading the outlook for corporate profits after most sectors, except technology and auto firms, delivered better-than-expected first-quarter earnings," said Sung Jin-kyung, an analyst at Daishin Securities. "A correction will come inevitably sooner or later after the market has marched upward furiously. But rising interest rates, bullish stocks and a firming won all point to a better picture for the domestic economy and upside momentum for a while." The benchmark Korea Composite Stock Price Index (KOSPI) was up 0.01 percent at 1,584.46 points by 0120 GMT, having hit an all-time high of 1,589.07 earlier in the session. As of Friday, the KOSPI had gained for ninth consecutive weeks, its longest streak since November 2005 to January 2006, having set a string of records along the way. Hyundai Heavy surged 5.94 percent to 276,000 won, after touching an all-time high of 279,000 won, a day after the world's biggest shipbuilder reported a record quarterly profit, prompting UBS and other banks to raise earnings forecasts [ID:nSEO63738] The results also cemented optimism the sector's profits would improve this year and beyond, sending world's No.2 shipbuilder Daewoo Shipbuilding & Marine Engineering up 2.1 percent to 38,950 won and third-ranked Samsung Heavy up 1.73 percent to 35,200 won. However, lenders extended their recent slide on lingering concerns earnings will slow from record profits seen in the first quarter, with fierce competition continuing to pressure net interest margins, a key profitability gauge in the sector. Since the end of March, the sub-index of banks has fallen 2.7 percent as of Monday's close, compared with a 9.1 percent rise in the main KOSPI. Top lender Kookmin Bank slid 0.85 percent to 81,300 won, and No.2 Shinhan Financial Group shed 1.17 percent to 50,600 won. Third-ranked Woori Financial Group was off 2.72 percent at 21,450 won. |
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