As stocks burn, KT&G gains in the 4% range [STOCK NOW]

[Financial News] KT&G is rising in the 4% range, bucking the downturn in South Korean stocks. As market uncertainty grows, its appeal as a defensive stock with stable earnings and the prospect of shareholder returns is coming into focus.
At 10:05 a.m. on the 15th, KT&G was trading at 189,400 won on the Korea Exchange, up 7,600 won (4.18%) from the previous trading day.
Analysts say growth in its overseas tobacco business and increased shareholder returns underpin KT&G’s appeal as a defensive stock. They forecast revenue of 1.8983 trillion won and operating profit of 500.7 billion won in the third quarter of this year, supported by higher overseas sales volumes, price increases and lower costs in South Korea. Those figures would represent increases of 3.9% and 7.6%, respectively, from the same period a year earlier.
The company is also expected to announce a new medium- to long-term shareholder return policy within the year. With large-scale capital investment complete, investors expect higher profits from overseas businesses could lead to increased dividends.
Analyst Choi Go-un of Korea Investment & Securities Co., Ltd. said, "In a situation where uncertainty across the stock market is high, as it is now, simply serving as a dependable defensive stock is attractive," adding, "Expectations for shareholder returns will grow further, given that growth in overseas earnings is directly linked to dividend upside."   




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