By Shinhye Kang and Saeromi Shin
July 29 (Bloomberg) -- Hyundai Steel Co., South Korea’s biggest maker of construction steel, rose to the highest in almost a year in Seoul trading after reporting a better-than- expected second-quarter profit.
Hyundai Steel jumped as much as 5 percent to 67,100 won, the highest since Aug. 4, 2008. It traded at 67,000 won at 10:57 a.m. local time. The benchmark Kospi index dropped 0.2 percent.
Net profit rose more than five-fold to 283.3 billion won ($228 million) in the three months ended June 30 from the previous three months, the Incheon-based company said yesterday. The profit compares with the 126.7 billion won median estimate of 8 analysts surveyed by Bloomberg. Hyundai Steel also said government spending may spur demand in the second half.
Morgan Stanley lifted its share-price estimate to 78,700 won from 69,500 won and maintained its “overweight” rating, according to a report today by analysts including Hyunjae Lee.
“We expect rebar demand to turn more favorable in the fourth quarter thanks to government-led construction projects and less pricing pressure from Chinese imports,” the brokerage said. Rebar, short for reinforcing bar, is used to strengthen concrete.
To contact the reporters on this story: Shinhye Kang in Seoul at skang24@bloomberg.net; Saeromi Shin in Seoul at sshin15@bloomberg.net
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