Tuesday, August 27th, 2013
SEOUL, KOREA - LG Group company shares are showing strength of late. At 1:21 pm on August 26, the shares of LG Corp. were traded at 66,900 won, up 2.76 percent from the previous day's 65,100 won, a turnaround after five consecutive days of decline.
HI Investment & Securities analyst Lee Sang-heon said, "As LG Chem, a leading company within LG Group, gets large-scale orders for rechargeable batteries for electric cars and energy storage systems, the whole group companies' turnaround will materialize."
A rise in electric car-related orders will benefit the whole group including LG Electronics (as the control tower for electric car parts business), LG Chem (batteries), LG Innotek (automotive electronic parts), LG Display (display panels), LG CNS (battery recharging infrastructure), and LG Hausys (bumpers and car seats), the analyst expected.
He added that the share price rises in leading group companies would have a positive effect on other smaller affiliates, thereby bringing up the share prices of the whole group.