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Korea Hot Stocks - Airlines, STX Enpaco, LG Elec, Hyundai Corp
Reuters - Friday, May 15
SEOUL, May 15 - Stocks on the move on Friday include:
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As of 0259 GMT, the main KOSPI <.KS11> was up 1.27 percent at 1,398.49 points.
The index opened 1.03 percent higher at 1,395.15 points.
**AIRLINES GAIN ON NEWS OF FARE INCREASE**
Shares in South Korea's top air carriers rose after a media report on Friday that Korean Airline <003490.KS> and Asiana Airlines <020560.KS> will raise airfares on long-haul international routes from June, the first time since 2006.
Fares on U.S. routes would rise by 10-15 percent and fares on European and Australian routes would be increased by 5-10 percent, according to MoneyToday.
"Raising fares is the best way for both companies to improve their finances. For Korean Air, it will generate about 7.5 billion won more in sales, or 3 percent of its total sales figure, at no additional cost," said Yang Ji-hwan, an analyst at Daishin Securities.
Korean Airline advanced 4.69 percent to 41,300 won. Asiana Airlines gained 3.63 percent to 4,280 won as of 0259 GMT.
0259 GMT
**STX ENPACO JUMPS ON ITS FIRST TRADING DAY**
STX Enpaco <071970.KS>, a ship engine parts making unit of STX Group, was trading at 29,900 won per share, up by the daily limit of 15 percent from its opening price of 26,000 won, which was double the initial public offering price of 13,000 won.
The company said in a filing to the Korea Exchange that it planned to achieve 27 percent year-on-year growth in annual sales to 1.3 trillion won , and 29 percent growth in net profit to 66 billion won, for fiscal 2009.
"STX Enpaco will have no problem achieving those numbers. Its main customer, STX Engine <077970.KS>, is doing very well," said Lee Ji-hoon, an analyst at SK Securities.
STX Engine on Friday said first-quarter net profit jumped 459 percent to 20.2 billion won from a year earlier.
0204 GMT
**LG ELEC JUMPS ON ROSY EARNINGS OUTLOOK*
LG Electronics <066570.KS> rose on Friday as its earnings outlook for the second quarter continued to strengthen, analysts said.
"We are hearing that shipments of its handsets and household electronics such as televisions have been quite strong this quarter," said Chung Sung-ho, an analyst at KB Investment & Securities, pointing to strong demand from China spurred by government stimulus measures.
Shares in the world's No.4 handset maker were up 3.23 percent.
0050 GMT
**HYUNDAI CORP FALLS AFTER SALE SCRAPPED**
Hyundai Corp <011760.KS> declined after news late on Wednesday that banks had scrapped an auction to sell a majority stake in the trading and resource-development company to Hyundai Heavy, the final bidder, due to a price gap.[ID:nSEO253494]
Shares in Hyundai Corp were down 4.07 percent.
0048 GMT
(Reporting by Shin Jieun and Jungyoun Park; Editing by Jonathan Hopfner and Chris Lewis)
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