Shares of CJ CGV Co., South Korea’s largest cinema chain, have shot up this month as keen attention to an “Avengers” sequel, a new blockbuster Hollywood movie, raises hopes for earnings ahead of its release this week, analysts said Tuesday.
“Avengers 2: Age of Ultron” is under the spotlight here as it was partly filmed in the capital, Seoul, in April last year, drawing thousands of fans during last week’s preview event and having more than 90 percent of tickets booked for the first day of the film’s release.
CJ CGV, which had been in a slump with a lack of big box-office grossers lately, jumped 11 percent this month, hitting a 52-week high of 74,600 won (US$68.90) during last Tuesday’s session. It declined 1.35 to end at 73,200 won on Tuesday, while the benchmark KOSPI reatreated 0.09 percent.
Market watchers say CJ CGV will be the biggest beneficiary if the movie becomes a huge success as the movie chain has an exclusive deal with IMAX, which features sharper images and an overwhelming sound system.
“Avengers 2 may boost the local box office, which has been lackluster earlier this year,” Kim Hyung-yong, a researcher at E-Best Securities, said.
Although “Avengers 2” hasn’t yet hit the local box office, high expectations for its success may have boosted its share price recently, said Cho Sung-jin, a public relations official at CJ CGV.
CJ CGV saw its share prices surge nearly 20 percent over a two-month period after “Roaring Currents,” which was also screened in the United States and China, swept audiences following its opening in late July.
The homegrown film about a 16th-century Korean naval hero’s crushing victory over Japanese naval forces exceeded the 17 million-viewer mark, the first film to do so in Korean movie history. (Yonhap)
