Friday, May 21, 2010

Stock Market Offers Mixed Results for Two Megastars

Two Korean megastars are faring differently in the stock market. Shares of KeyEast, whose largest shareholder is actor Bae Yong-joon, rose 5.02 percent from Tuesday to trade at W3,350 on the Kosdaq on Wednesday afternoon (US$1=W1,165). In contrast, singer Rain's J.Tune Entertainment saw its shares drop 9.84 percent to W275. Rain is the largest stockholder in the firm.

KeyEast's shares were valued in the W2,000 range early last month, but its solid performance in the first quarter prompted their rise. On Monday it announced a quarterly operating profit of W586 million, up a whopping 796 percent on-year, and sales of W8.16 billion, up 223 percent. "A merger with subsidiary BOF and production of the animation version of 'Winter Sonata' helped improve performance," the firm said.

J.Tune is struggling amid the news that Rain has sold off some of his shares and its sales are deteriorating. Its shares fell for a sixth day in a row on Wednesday. The company posted a W915 million operating loss in the first quarter, similar to a W969 million loss a year ago. / May 20, 2010 10:48 KST
Source: Chosun Ilbo

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