Shipbuilders’ shares hit by cancellations
Daewoo Shipbuilding and Marine Engineering Co., the world’s third-largest shipbuilder, fell the most in almost a year in Seoul trading, pacing declines in Korean and Singaporean shipyards on concern of more order cancellations.Daewoo Shipbuilding, the world’s third-largest maker of ships, tumbled 14 percent to 35,450 won ($36), the most since Aug. 16. Hyundai Mipo Dockyard Co. fell 6.6 percent to 184,500 won, the most since March 10.
Cancellations at Daewoo Shipbuilding and Hyundai Mipo last week raised concerns that slowing global economic growth may end five years of record orders for shipyards.
“Investors are worried that the super cycle in the shipbuilding industry may be drawing to an end,’’ said Lee Jae-won, an analyst at Tong Yang Securities. Still, he rates the sector “overweight.’’
Daewoo Shipbuilding said Aug. 1 that a European customer canceled a 619 billion won ($609 million) order for eight midsized container vessels. Hyundai Mipo, the world’s fourth-largest shipyard, said the same day another European buyer pulled a 197 billion won order for four chemical carriers.
Hyundai Heavy Industries Co., the world’s biggest shipbuilder, lost 10 percent to 275,500 won. Samsung Heavy Industries Co., the second largest, declined 7.9 percent to 35,500 won.
“The weak economy is making financing for new shipbuilding harder.’’ said Han Byung Hwa, a Seoul-based analyst at Hyundai Securities Co. Bloomberg
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)