Shares of South Korean tech giant LG Electronics Inc., which have been on a losing streak since March, sunk to a fresh one-year low as its earnings outlook worsened from softening in its premium TV business that has so far helped offset losses in smartphone and automotive electronics.
The blue-chip tech stock hit a fresh 52-week bottom on Tuesday, closing 4.03 percent lower at 69,000 won ($61.27).
Merrill Lynch and other foreign investment banks dumped the shares for the 13th straight day. The company lost more than 1.28 trillion won in market value over the past two weeks amid a mass selling spree from offshore investors. About 39 percent of its value has been wiped off since its annual peak of 113,500 won on March 13.
Shinyoung Securities Co. released a report last week projecting LG Electronics’ operating profit in the third quarter to fall 6 percent to 727 billion won, well below the market consensus of 803.4 billion won. Sales are estimated to rise 7 percent to 16.1 trillion won.
“LG Electronics is being closely chased by rivals in the high-end TV market and will likely face bigger challenges down the road as rivals are expected to up their ante on the promotional front,” the brokerage said. “Its new vehicle component division is also failing to make money and exactly when it can turn a profit remains uncertain.”
By Moon Il-ho and Kim Hyo-jin
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