Shares in LG Display Co Ltd , South Korea’s largest display maker, rose more than 5 per cent on Tuesday morning, bucking the decline in the broader market, as several brokerages tipped a positive outlook for the sector in the first quarter.
Analysts expect LG Display’s earnings to improve from the fourth quarter, owing to firm TV panel prices and a surge in demand following the launch of Apple Inc’s iPhone 6.
“There were some concerns about inventory, but it appears that things are better than what was initially expected,’’ said Nam Dae-jong, an analyst at Hana Daetoo Securities.
“China-related demand in the first quarter is expected to be healthy as well, and share prices had fallen too much recently.’’
Shares in LG Display had dropped more than 9 per cent as of Monday’s close from last month’s high on December 12 due to investor worries over overcapacity and inventory build-up as display makers enter the traditional off-peak season.
Sister firm LG Electronics Inc also rallied 3.3 per cent as one of the bright spots in the wider KOSPI market, which has fallen nearly 1.5 per cent as of 0250 GMT amid a global equities sell-off.