Foreign capital boosts Hyundai stocks

With the August 29 news that foreign capital has been earmarked for Hyundai affiliates such as Hyundai Securities, the stocks of Hyundai Group`s affiliates have begun to rise. However, with the continued overall negative influence of the bear market, programmed sales and profit taking has limited the price rise.

Of the 25 listed stocks of Hyundai affiliates, 18, including Hyundai Motor, Hyundai Engineering & Construction and Hyundai Securities, have enjoyed price increases, while prices decreased for six affiliates, including Hyundai Pipe, Hyundai Electronics Industries closed out the day with a steady price.

The bullish factor of the Hyundai affiliates is attributed to the foreign capital investment of 1.1 trillion won in Hyundai Financial, which many felt would alleviate Hyundai`s cash-flow crisis.

"As the foreign capital investment came without any legally binding terms but as a memorandum of understanding, many have voiced their concern of it being a double contract,¡± an expert in the stock market warned. ¡°As such, the stock price increase might not continue for long."