RPT-Likely losers, winners in Corporate Korea after attack

Published 11/23/2010, 06:53 PM
Updated 11/23/2010, 06:56 PM

(Repeats story first published Nov 23)

SEOUL, Nov 23 (Reuters) - South Korea's stock market is expected to take a big hit on Wednesday after North Korea fired dozens of artillery shells at a South Korean island, in one of the heaviest bombardments on the South since the Korean War ended in 1953. [ID:nTOE6AM01Q]

Following are expected losers and winners in Corporate Korea following the incident, which happened on Tuesday after the close of stock market trading in Seoul.

The KOSPI 200 index futures for December delivery fell 2.44 percent on Tuesday.

HYUNDAI GROUP MAY TAKE BIG HIT ON N.KOREA OPERATION

Shares in Hyundai Merchant Marine <011200.KS>, the flagship unit of Hyundai Group which owns unlisted North Korean tour firm Hyundai Asan, may take a big hit on concerns its North Korean business may suffer.

FIRMS WITH FACTORIES IN N. KOREA ARE ALSO SET TO BE HIT HARD

Shares in companies which run factories in North Korea such as watch maker Romanson <026040.KQ> and apparel producer Shinwon Corp <009270.KS> may plunge on uncertainty over their North Korean business.

BLUE CHIP SHARES OWNED BY BIG FOREIGN INVESTORS MAY FALL

Market heavyweight stocks including Samsung Electronics <005930.KS>, Hyundai Motor <005380.KS> and POSCO <005490.KS> could take a beating as foreign investors may exit out of Korea due to rising concerns of political risks in the country. An expected fall in the local currency, which could reduce their repatriation of investments in dollars, is also a negative.

Samsung is 50.4 percent owned by foreigners, Hyundai by 43 percent and POSCO by 49 percent.

STAPLE PRODUCERS MAY GAIN

Foodmakers may rise on prospects of some citizens hoarding food, concerned by the outbreak of war in the Korean peninsula. Instant noodle makers such as Nong Shim <004370.KS> and Samyang Foods <003230.KS> may benefit.

DEFENCE STOCKS TO BENEFIT MOST ON GROWING TENSION IN KOREA

Defence shares may rise on concerns of growing tensions in the Korean peninsula. Shares which may benefit include jet engine maker Samsung TechWin <012450.KS>, military equipment producers Victek <065450.KQ>, Huneed Technology <005870.KS>, which makes wireless communications equipment for military purposes and artillery maker S&T Daewoo <064960.KS>.

Shares in Speco <013810.KQ>, which provides equipment for military ship, silicon rubber producer HRS <036640.KQ> and Firstec <010820.KS>, may also rise.

(Reporting by Miyoung Kim, Ju-min Park and Hyunjoo Jin; Editing by Anshuman Daga) (miyoung.kim@thomsonreuters.com; +822 3704 5651; Reuters Messaging: miyoung.kim.reuters.com@reuters.net)) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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