Northern, WI 1/30/2013 (usmarketbuzz) – Technology companies’ shares went up for the first time in two months as manufacturer’s belief in South Korea received a boost. This in turn broke the 4-day fall of emerging-market shares.
Shares of South Korea’s second largest automobile manufacturer, Kia Motors, shot up by 5.1% from its November 2010 lows. In the same vein, Largan Precision Co. In Taipei went up the most in the past 7 weeks before its price-earnings report. China’s positive economic growth pushed the China Shanghai Composite Index into a bull phase.
The Hong Kong based MSCI Emerging Markets Index climbed up 0.6% to 1,068.45 yesterday. Yesterday, it was trading at 10.7 times yearly earnings which is an 18% discount against the MSCI World Index. Manufacturers in South Korea were jubilant after a report revealed that US orders for consumer-durable merchandise surpassed the maximum economist predictions.
The Shanghai Composite Index went up by 0.5% which is an increase of 20% in less than 2 months. This is considered the start of a bull phase by most investors. South Korea’s Kospi Index and Philippine Stock Exchange also increased by 0.8% and 0.7% respectively.
In the currency sector, the Korean won broke the four-day drop as many market members termed the recent lows too harsh. In exactly the same manner, Indonesia’s rupiah also broke its four-day loss.
The Kia Motors’ stock surged the most breaking its 9.8% decline since November 16. Hyundai Motors Co., also went up by 4%. Samsung C&T Corp., climbed 6.8%, the biggest rise in 4 years after the company declared a record fourth quarter profit which surpassed projections. Largan Precision Co., which makes lenses for cameras, went up by 7%.
The world’s largest moneylender, Industrial & Commercial Bank of China, weakened by 2.2% after Goldman Sachs Group Inc. (NYSE:GS) sold some of its holdings in the bank at a discounted rate of HK$5.77 against the market rate of HK$5.95.
Seoul-based advertising company, Cheil Worldwide also went up by 7.4%. The company also revealed that they were planning a shares buyback between Jan. 30 and April 29.
In Mumbai, Adani Ports and SEZ saw a rise of 7.5% which is the highest since November 2009 backed by news that the company had planned expansions worth $235 million.
There were some losers too like Malaysian palm-oil producer, Genting Plantations Bhd. Which dropped 4.1%. Similarly, Russian airline carrier, OAO Aeroflot, went down by 4.2% after reports that the company may defer its second public offering.
The shares of Goldman Sachs Group Inc. (NYSE:GS) were up by 2.05% to close at $147.10.
