BUY OR SELL-Is there more fuel in S.Korea auto shares rally?

martes 25 de agosto de 2009 04:42 CEST
 

* Hyundai Motor shares hit record high

* Popular compact models, robust global sales help

* Risks of possible forex swings, uncertain economic outlook (For other Reuters BUY OR SELL stories, click [BUYSELL/])

By Jungyoun Park

SEOUL, Aug 25 (Reuters) - Shares in Hyundai Motor Co (005380.KS: Cotización) and affiliate Kia Motors (000270.KS: Cotización) have more than doubled this year, easily outperforming their Japanese peers, thanks to surprisingly strong profits and growing market share.

But the reasons to buy the stocks could be starting to fade as government stimulus efforts end, the won strengthens and share prices exceed analysts' targets.

OUTPERFORMANCE TO CONTINUE

Some analysts argue the momentum in Hyundai's overseas sales, up 67 percent in January-July from a year ago, should continue into the second half.

"There is no question about us remining overweight on Hyundai through this year," said Kang Sang-min, a Prudential Investment & Securities analyst. "Sales in developed markets including the United States will be strong, helped further by new model launches. Robust performance in China will not die down either."   Continuación...