Ailing shipbuilder scuttles banking shares
Seoul’s main stock market dropped 0.1 percent yesterday as banks tumbled due to their exposure to ailing shipbuilders, analysts said. The Kospi edged down 1.08 points to 1,058.18 in volatile trading. Volume was moderate at 503.8 million shares worth 4.44 trillion won ($2.82 billion), with losers beating gainers 483 to 342.“The market sentiment was dented by word that the collapse of a troubled small shipyard could deal a heavy blow to its creditor banks and other shipbuilders,” said Kim Seung-han, an analyst at Hi Securities.
Bank shares fell across the board due to potential exposure to Jinse Shipbuilding. The shipbuilder is in danger of being driven out of its debt workout program, as it saw orders canceled after it was placed under a debt rescheduling program in late January. KB Financial Group, which controls top lender Kookmin Bank, fell 3.1 percent, with Woori Finance Holdings down 4.5 percent.
Large shipbuilders also lost substantial ground following a two-day bullish run. Hyundai Heavy Industries, the world’s biggest shipbuilder, lost 3 percent. Samsung Heavy Industries, the second largest, shed 2 percent. Daewoo Shipbuilding and Marine Engineering, the third biggest, sank 6.3 percent.
On the other hand, the tech bellwether Samsung Electronics jumped 2.9 percent.
Posco, the world’s fourth-biggest steelmaker, added 1.9 percent. Hyundai Steel, Korea’s second-largest steelmaker, advanced 3.5 percent. European Union steelmakers withdrew a complaint about EU imports of stainless steel from China, Taiwan and Korea, marking the second time in four months the economic slump has forced the industry to reverse policy.
NHN, owner of Korea’s most-used Internet search engine, rose 4.5 percent. NHN will spin off its marketing and infrastructure divisions to increase efficiency, the company said in a regulatory filing after the market closed. Nongshim, Korea’s biggest instant noodle maker, gained 1.3 percent.
Korea Gas, the world’s biggest buyer of liquefied natural gas, rose 3.1 percent. Korea Gas and Woodside Petroleum Ltd. reached a preliminary agreement to explore three fields in western Australia, Korea’s Ministry of Knowledge Economy said in an e-mailed statement on Wednesday.
Yonhap, Bloomberg
with the Korea JoongAng Daily
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