|
The Korea Stock Exchange took well the news of Chung Mong-joon¡¯s departure from the presidential race on Monday. According to the KSE, the share price of Hyundai Motor and Hyundai Heavy Industries on 22 different items, except preferred stocks of Hyundai Engineering and Construction and Hyundai Information Technology, made sharp increases. In addition, the share price of Hyundai Heavy Industries and Hyundai Mipo Dockyard, of which Chung is an owner, increased 9 percent and 7.2 percent respectively.
The share prices of Hyundai Motor also increased by 6.4 percent, while Hyundai Merchant Marine grew by 10.6 percent. Song Jae-hak, LG Investment and Securities Analyst, said, "Stock owners of Hyundai shares predicted less risk on their shares, since the probability of Hyundai¡¯s involvement in upcoming election remarkably reduced due to Chung¡¯s removal."
However, Korean financial circles still worry that the risk to Hyundai Heavy Industries may not have completely disappeared, since Chung Mong-jun might become the head of a campaign committee in the near future. The more Chung is involved in politics, the riskier his shares are thought to become.
"Currently, Hyundai Heavy Industries is having hard time, due to a slump in the shipbuilding business, and also it has not responded well to the change in the exchange rate. In addition, the political situation might make the situation worse," said Lee Jong-seung, an analyst for Woori Securities.
(Kim Ki-hun, khkim@chosun.com )
|
