SEOUL, KOREA - Hyundai Securities stock is showing strength on the news that securities stocks would benefit from the government's economic policy for the second half. At 10:52 am on July 23, the shares of Hyundai Securities were traded at 7,290 won, up 7.68 percent (520 won) from the previous day's 6,770 won. This was largely due to expectations that securities and construction stocks would be main beneficiaries of the upcoming announcement of the government stimulus measures scheduled on the 24.

 

In addition, it is considered the price-book value ratio of the stock has been undervalued. As the company undergoes a successful asset sell-off process, with its financial standing improving markedly, its stock is seeing a steady rise lately.

 

Market observers are watching intently whether Hyundai Group companies will take part in the bidding to acquire Hyundai Securities stakes. Currently three bidders, including Orix Group of Japan and private equity fund firms Jabez Partners and Pine Street Capital Partners, have tendered preliminary bidding documents.

 

The main bidding is scheduled at the end of August. Once the stake sell-off process goes smoothly as planned, Hyundai Securities will be able to find a new owner by the end of August.