Korea Hot Stocks -Hana Fin, Doosan Infracore
Reuters - 2 hours 35 minutes ago
SEOUL, Nov 12 - Stocks on the move on Wednesday include:
As of 0022 GMT, the main KOSPI <.KS11> was down 0.10 percent at 1,127.56 points, after U.S. markets dropped on a batch of negative corporate news while signs of weakness in China's economy weighed on industrials.
The index opened 2.2 percent lower at 1,103.88 points.
**BANKS TUMBLE AFTER BUILDER FILES FOR COURT PROTECTION**
Shares in South Korean banks tumbled across the board on Wednesday on worsening worries about their financial health after large builder Shinsung Engineering & Construction <001970.KS> said in a regulatory filing it had requested court protection to avoid bankruptcy.
"Investors' fears have materialised. The filing for court protection by Shinsung confirms how much the construction sector has deteriorated," said Shin Kyu-kwang, an analyst at SK Securities, adding that banks could face more losses related to bad debts among builders and small-and-medium sized enterprises.
"Weakness in the won currency also points to further foreign currency related losses for banks. Hana Bank for one will see quite a big loss from foreign currency options," Shin added.
Shinhan Financial Group <055550.KS> lost 3.85 percent and Hana Financial Group <086790.KS> dropped 10.96 percent. Woori Finance Holdings <053000.KS> fell 6.07 percent.
Shares in Hana were under especially heavy pressure, plunging as much as 14 percent in earlier trade on market talk of a possible capital increase, but the country's No. 4 banking group denied the speculation.
**DOOSAN INFRACORE RISES AFTER ANNOUNCING SPLIT PLAN**
Shares in Doosan Infracore <042670.KS> rose on Wednesday after South Korea's leading maker of heavy machinery said in a regulatory filing to the Korea Exchange that the company plans to spin off its defence industry unit.
The announcement said the unit's net assets totalled 100 billion won .
Shares in Doosan Infracore were up 4.76 percent as of 0056 GMT.
"It's good that they will be able to get the much needed cash, and shares are reacting to this short-term positive development," said Lee Ji-hoon, an analyst at SK Securities.
"However in the long term, Doosan Infracore will continue to have hard times given the current economic downturn and its current investments," Lee added.
(Reporting by Park Jung-youn; Editing by Keiron Henderson and Jonathan Hopfner)
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