Shipping Lines, Doosan Infracore, KT: S. Korea Equity Preview

By Kyung Bok Cho and Saeromi Shin

Sept. 2 (Bloomberg) -- The following companies may have unusual price changes in South Korea. Stock symbols are in parentheses, and share prices are from the previous close. This preview includes news announced after markets shut.

The Kospi index slid 4.1 percent to 1,414.43.

Shipping stocks: Daishin Securities Co. cut its rating on the container-shipping industry to ``neutral'' from ``overweight,'' in a report, saying demand is expected to decline due to the slowing global economy. The brokerage cut its price estimate on Hanjin Shipping Co. (000700 KS) by 29 percent to 37,000 won.

Hanjin, South Korea's biggest shipping line, lost 4,100 won, or the daily limit of 15 percent, to 23,900. Hyundai Merchant Marine Co. (011200 KS), the country's second-largest shipping line, fell 50 won, or 0.1 percent, to 38,800.

Doosan Infracore Co. (042670 KS): Merrill Lynch & Co. cut its price estimate by 13 percent to 20,000 won, in a report, citing lower earnings expectations for Infracore's Bobcat units in the U.S. ``It is hard to say that no further cash injection will be needed,'' the brokerage said.

Doosan Infracore, South Korea's largest construction- equipment maker, tumbled 3,150 won, or the daily limit of 15 percent, to 18,100.

KT Corp. (030200 KS): Merrill Lynch & Co. raised its price estimate by 7 percent to 64,000 won, in a report. The company will seek a merger with KT Freetel Co. (032390 KS), its wireless- service subsidiary, within six months, Merrill said.

KT, South Korea's largest phone and Internet company, closed unchanged at 44,800 won. KT Freetel advanced 100 won, or 0.4 percent, to 28,750.

To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net; Saeromi Shin in Seoul at sshin15@bloomberg.net.