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Korea Hot Stocks-Retailers, shipbuilders, Hyundai Steel up
Reuters - Monday, May 4
SEOUL, May 4 - Stocks on the move on Monday include:
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As of 0323 GMT, the main KOSPI <.KS11> was up 1.57 percent at 1,390.80 points.
The index opened 1.22 percent higher at 1,386.02 points.
**RETAILERS GAIN ON STRONG SALES REPORTS**
Shares in leading South Korean retailers rose following media reports of strong holiday sales, which added to signs of a local consumption recovery.
Yonhap News reported on Monday that Lotte Department Store reported a 17 percent jump in sales for May 1-3, a long weekend led by the Labour Day Holiday, from a year earlier.
Same-store sales at the Shinsegae chain grew 12 percent in the same period.
In April, Lotte's stores recorded 8 percent year-on-year sales growth. Shinsegae and Hyundai department stores posted 5 percent and 3 percent growth, respectively, Yonhap said.
Lotte Shopping <023530.KS> shares rose 4.69 percent and Shinsegae <004170.KS> climbed 2.41 percent. Shares in Internet shopping mall operators also rose, with Interpark <035080.KQ> gaining 4.21 percent and D&Ship <090090.KQ> up 2.09 percent.
0323 GMT
**SHIPBUILDERS GAIN ON HOPES OF INDUSTRY BOTTOM**
Shipbuilding stocks rose sharply on expectations the downturn-hit industry was nearing a bottom and shipmakers' earnings would improve.
Hyundai Heavy Industries <009540.KS> rose 5.87 percent and Hanjin Heavy Industries <097230.KS> climbed 4.04 percent. Samsung Heavy Industries <010140.KS> advanced 3.29 percent and Daewoo Shipbuilding & Marine Engineering <042660.KS> added 3.74 percent.
Hyundai, the world's No.1 shipbuilder, reported after Thursday's market close a smaller-than-expected operating profit for the first quarter, but analysts expected its margins to improve from the second quarter as recent falls in steel prices are reflected.
Although a ship order draught could continue, expectations that shipbuilding prices could stablise after a plunge were helping the sector, analysts said.
"Profitability in the shipbuilding business likely bottomed in the first quarter and could improve until 2010," said H.W. Ok, an analyst at Meritz Securities.
0153 GMT
**HYUNDAI STEEL RALLIES ON BETTER OUTLOOK**
Shares in Hyundai Steel <004020.KS> gained for the third consecutive session as analysts said the company was poised to turn to profit in the second quarter.
In addition to improving demand, Hyundai Steel's earnings were expected to be helped by a new production facility that would start operation by the end of this year or early next year, said Kim Hyun-tae, an analyst at Hyundai Securities.
Hyundai Steel shares rose 4.61 percent to 56,700 won as of 0112 GMT.
0112 GMT (Reporting by Rhee So-eui and Shin Jieun; Editing by Jonathan Hopfner and Chris Lewis)
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