S KOREAN AUTO PARTS MAKER MANDO SHINES ON MARKET DEBUT

South Korea's leading auto parts maker Mando Corp. made a stellar comeback on the Seoul bourse on Wednesday as investors snapped up the company's shares betting on its bullish earnings outlook, analysts said.

Shares of Mando finished at 111,500 won (US$95.6), rising by the daily limit of 15 per cent after starting at 97,000 won. The company resumed trading on the main bourse, 10 years after it was delisted.

The closing number marks an advance of 34.3 per cent from 83,000 won, the price at which the firm first sold its shares to the public.

The broader benchmark stock index closed 0.8 per cent lower amid incessant jitters on the euro-zone fiscal concerns.

Mando's impressive stock market debut came as investors increased bets on the robust profit prospects of the company, which is the biggest parts supplier to fast growing local vehicle maker Hyundai Motor Co. (KSE:005380) and Kia Motors Corp (KSE:000270).

"Mando seemed to have brought its technologies accumulated over the past five years to the commercializable level," KB Investment & Securities Co. analyst Shin Chungkwan said in a note, citing auto brake, direction control and other technologies that help cars absorb shocks while driving.

The company will also capitalize on the fast expanding Chinese auto sector, securing supply contracts from local carmakers and Korean manufacturers in China, Shin said. "China is currently in a dire need of auto parts makers with a high safety and credibility standard and Mando will likely benefit from the growth of the Chinese auto sector."

The company, previously named Mando Machinery Corp., was delisted from the Korea Exchange, the bourse operator, in 2000 due to poor performance stemming from the Asian-wide financial turmoil.

Its parent Halla Group bought back a 72.4 per cent stake in the auto parts supplier for 651.5 billion won in 2008 after selling it in 1999.

Mando's re-listing came after Samsung Life Insurance Co. (KSE:000810), South Korea's biggest life insurer, made a solid market debut last Wednesday amid keen interest from investors.

Last week, the firm raised 498 billion won by selling 6 million shares in its initial public offering. The money will be used to bolster its manufacturing facilities, expand overseas operations and invest in new businesses, the firm said.