[Featured Stocks] Hyundai Motor and Kia Motors Rise on Expectations of Improved Earnings

[Asia Economy Reporter Minji Lee] Hyundai Motor and Kia Motors are showing an upward trend amid expectations of strong earnings.

At 9:02 a.m. on the 27th in the KOSPI market, Hyundai Motor was traded at 173,500 KRW, up 1.17% from the previous session. Kia Motors also traded at 50,200 KRW, up 4.69% from the previous session. It is interpreted that investor sentiment expanded as Hyundai Motor and Kia Motors announced record earnings excluding increased quality costs in their earnings reports the previous day.

Kim Pyeongmo, a researcher at DB Financial Investment, said, “Kia Motors showed a significant improvement in the third quarter due to demand from the domestic market as well as key sales regions such as the United States and Europe. The average selling price (ASP) is expected to continue rising in the fourth quarter, and demand is also expected to recover in emerging markets such as India and Russia.”

Hyundai Motor is also expected to see further stock price increases. Kim Dongha, a researcher at Hanwha Investment & Securities, explained, “Although uncertainty remains high due to concerns about the resurgence of COVID-19, valuation reappraisal is expected considering the full-scale effect of new models, profitability improvement through increased Genesis sales next year, and rising market share in electric vehicles.”