By Park Hyong-ki
Staff Reporter
It was a hard landing for Asiana Airlines on the first day of trading on the benchmark KOSPI market Friday, after transferring its shares from the tech-heavy Kosdaq.
Asiana shares shed 90 won, or 1.34 percent, to close at 6,580 won.
The airline is the first firm to cross over to the KOSPI this year, following two dozen or more companies that have left the junior market over the years.
Despite brisk business on increasing overseas travels, analysts are painting a dark picture for the country's second largest airliner in 2008.
Skyrocketing oil prices that recently topped $100 a barrel will weigh down its profitability in the foreseeable future, while increasing surcharges on fuel will be unable to offset the energy burden.
``Rising oil prices are expected to place the company in a difficult situation,'' said Kim Jin-sung, an analyst of Kyobo Securities.
The general consensus initially showed that its operating profit was expected to post around 170 to 190 billion won this year, but many market watchers say they plan to revise this down not only due to high oil prices, but also the weakening of the Korean won against the U.S. dollar.
``Such external negative factors are going to weaken its fundamental this year,'' said an analyst, asking for anonymity.
The analyst said the company's shares will remain in ``the shadows of Korean Air,'' the country's No.1 carrier also trading on the benchmark KOSPI, as investors are likely to shun Asiana.
``Investors are not going to increase investment in Asiana, while they already have Korean Air shares in their KOSPI portfolios,'' she said.
Asiana, which used to be a large-cap firm on the tech-loaded market with market capitalization of some 1.2 trillion won, slides down the ranking on the KOSPI. It ranked No. 6 on the Kosdaq, but it is placed around 100th on the main bourse. It was listed on the Kosdaq in December 1999.
``It will be difficult for the airline to be included in the KOSPI 200,'' said Kim of Kyobo, adding that its trading volume will not be equal to that of its junior market listing.
Asiana decided to move to the KOSPI after gaining approval from its shareholders on March 14. ``The KOSPI better suits the company than the tech-heavy market. Listing on the main bourse will stabilize our stock price, and help the firm further promote its image,'' said the company in a press release.
It had said the company aims to boost its stock price to over 100,000 won per share, without giving a specific timeframe.
phk@koreatimes.co.kr