[Featured Stock] 'Power Shortage Beneficiary' LX International Plummets Over 10%

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] LX International, which recently surged as a beneficiary of China's power shortage, is plummeting on the 7th as energy prices turn downward.

As of 10:41 AM on the day, LX International is trading on the KOSPI at 30,650 KRW, down 12.80% (4,500 KRW) from the previous day.

The company showed a five-day consecutive rise starting from the 27th of last month, when inflation concerns grew due to China's power shortage, and even hit a 52-week high of 38,150 KRW the day before. Hana Financial Investment raised the target price by 6.8% to 47,000 KRW the previous day, expecting solid performance in the third quarter due to strong raw material prices for LX International.

However, the stock price sharply dropped on the day as energy prices fell, with natural gas prices down 9% and international crude oil (WTI) down 1.9% the previous day.