Composite stock price index rises for third consecutive day

As the government reaffirmed its strong will for corporate restructuring just ahead of the announcement of a list of companies to be exited, the composite stock price index, or KOSPI, rose for the third consecutive day. As foreigners and institutional investors continued to buy up shares for the second day in a row Thursday, the index once broke the 560-point line. Foreigners and institutional investors purchased shares worth 91.4 billion won and 56.5 billion won, respectively.

In the day¡¯s market, a strange phenomenon showed that buying power was intensified in stocks of companies standing at the crossroads between being revived and declared insolvent, pushing their prices up to the limit.

In particular, after it was reported that Hyundai Engineering and Construction (HEC), which was on the verge of being shut down, was classified for rehabilitation, the stock price surged to hit the ceiling. Other Hyundai affiliates also enjoyed increases. Analysts said that that investors felt the increased chance for HEC¡¯s revival would sharply reduce the burden on other affiliated companies.

Ssangyong Cement, which is also expected to be revived thanks to its recent capital attraction from Japan and creditors¡¯ debt-for-equity swap, soared to the limit. Sungshin Cement Manufacturing, Kohap and Kabool also edged up to the boundary immediately after it was reported that they would be rehabilitated. Saehan, which was excluded from the exit list as it has just gone under a workout program, also hit the ceiling. Shindongbang, Byucksan Construction and Kabool Spinning also showed strength and rose near the limit.

Construction shares, which have remained weak recently due to HEC and Dong Ah Construction crisis, also rose by more than 7 percent. Korea Industrial Development, Sambu and Namkwang Engineering and Construction and Ilsung Construction all hit the limit.

The KOSPI recorded 558.10 Thursday, 9.34 points (1.70 percent) higher than the previous day, regaining the 550-point mark in 15 days. The Kosdaq index also rose 1.89 points (2.47 percent) to close at 78.25. The stock exchange index has risen 53 points since Oct. 31.