Thursday, July 17th, 2014
SEOUL, KOREA - Shipbuilding stocks have rebounded after weeks of weakness. At 9:31 am on July 16, Daewoo Shipbuilding & Marine Engineering shares were traded at 24,850 won, up 2.69 percent (650 won) from the previous day's 24,200 won. Other shipbuilding shares such as Hyundai Mipo Dockyard (1.92%), Samsung Heavy Industries (1.57%), Hanjin Heavy Industries (0.73%), and Hyundai Heavy Industries (0.61%) rose across the board. Most market watchers said the shipbuilding stocks have finally hit the bottom and are set to rise.
Tongyang Securities analyst Lee Jae-won said, "There is a cautious consensus forming about shipbuilding stocks that they have reached the bottom and there is no way for them to go other than up. Up until now, the stocks were in free fall due to factors such as lackluster financial results, unfavorable movement of exchange rate, and decline in newbuilding prices. Going forward, there is no more bad news coming for them."
"Although the global commercial vessel and marine engineering market in June and July has been quiet, orders are expected to come in from the second half for the shipbuilders," he added.