SEOUL KOREA - The consumer goods stocks that have benefited from the high demand from China have been moving upward again after a pause.

 

On September 26, the share price of AmorePacific hit a record-high level at 2,355,000 won, up 3.88 percent (88,000 won) from the previous day. It had been at a nadir of 2,029,000 won after analyst comments that it was overvalued. Hotel Shilla shares have also rebounded from the bottom of 105,500 won on the 11th after hitting a high of 133,500 won last month.

 

Ahead of the National Day Golden Week holiday between October 1 and 7, the share prices of these stocks are reviving. The Korea Tourism Organization estimated that the number of Chinese tourists visiting Korea during the seven-day holiday period would be 160,000.

 

Woori Investment & Securities analyst Kim Byung-yun said, "In previous years, the stocks benefiting from Chinese special demand tended to shoot up during the October holiday season and stay that way until the year's end. Even though their price-earnings ratios are at historic highs, the stock prices are expected to keep rising buoyed by better-than-expected performances."

 

Casino stocks will also turn to a rising trend just before or after the National Day holiday. The price for Paradise, Korea's largest casino operator, was closed at 34,150 won on the 28th, down 2.71 percent (950 won) from the previous day. This is down 13 percent from the end of the last month. GKL shares have declined 6.7 percent for this month to date.