Shares of Cheil Industries Inc., the de facto holding firm of South Korea’s top conglomerate Samsung, rose by the daily permissible limit of 15 percent Friday on news that global index providers would add the company to their indices earlier than expected.
Cheil Industries closed at 129,500 won ($117) on the second day of trading. On its market debut on Thursday, the company closed at 113,000 won, more than doubling its initial public offering price of 53,000 won.
The country’s benchmark index, the KOSPI, jumped 1.71 percent. The median target price for Cheil Industries offered by eight brokerage houses was 95,400 won, with some suggesting over 125,000 won.
According to industry sources, the FTSE and the MSCI will add Cheil Industries to their indices on Dec. 29 and Jan. 5, respectively.
“The planned addition to the indices would help boost foreign investors’ buying bids for Cheil Industries,” said Kang Song-chul, an analyst at Korea Investment & Securities. “Cheil Industries could continue to rise down the road on such hopes.” (Yonhap)
