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Korea Hot Stocks - LG Powercomm, Dacom, Taihan Elec Wire rise
 
 
 
 
 
 
 Reuters - Wednesday, May 13
SEOUL, May 13 - Stocks on the move on Wednesday include:
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As of 0421 GMT, the main KOSPI <.KS11> was up 0.37 percent at 1,408.69 points.
The index opened 0.43 percent higher at 1,409.59 points.
**LG POWERCOM, LG DACOM UP ON MERGER HOPES**
Shares in LG Powercomm <045820.KS> and LG Dacom <015940.KS> jumped on Wednesday on market talk that the two firms may merge.
The Korea Exchange asked LG Powercomm, a broadband provider, and LG Dacom, a fixed-line firm, to verify the rumors.
"Shares are up on hopes for potential synergy between the two companies, though the extent and scale of this synergy is still unclear," said Shim Jun-bo, an analyst at HI Investment Securities.
LG Powercomm shot up 14.91 percent and LG Dacom gained 3.98 percent.
0421 GMT
**TAIHAN ELEC WIRE UP AFTER UNIT MERGER AGREEMENT**
Shares in Taihan Electric Wire <001440.KS> rose after news that steelmaker POSCO <005490.KS> had agreed to buy 65 percent of Taihan's stainless steel making unit Taihan ST. [ID:nSEO37450]
Analysts said investors expected Taihan Electric Wire to continue to try to ease its financing difficulties through restructuring efforts, such as selling stakes in its other units.
Korea Exchange on Wendnesday asked Taihan to clarify the rumour about its interest in selling stakes in TryBrands Inc <102280.KS>, a maker of underwear, and device rental service company Korea Rental Corp.
"Recently, investors have acted favorably towards stocks in companies seen active in their restructuring efforts. Taihan is likely to say they are considering sales of those subsidiaries," said Seo Jin-hee, an analyst at SK Securities.
Taihan Elec Wire shares advanced 3.14 percent to 26,300 won as of 0104 GMT. (Reporting by Shin Jieun and Jungyoun Park; Editing by Chris Lewis and Jonathan Hopfner)
 
 
 
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