Shipbuilders Rally as Hope Builds

Thursday, July 16, 2009

Shipbuilder stocks in Korea rallied today, apparently fueled on hopes the shipbuilding industry had hit bottom in the second quarter and that demand for new vessels may revive as world economies stabilize, according to a Reuters report. Reuters reported that Daewoo Securities said in a note on Thursday that a sectoral turnaround was expected in the third quarter, adding that companies with strong offshore plants were recommended. A precipitous fall in steel pricing has helped shipbuilder's profitability. Hyundai Heavy Industries, the world's largest shipbuilder, rose 3.85 percent to 189,000 won and Samsung Heavy Industries advanced 5.89 percent to 27,850 won as of 0230 GMT.Daewoo Shipbuilding Marine Engineering and STX Offshore & Shipbuilding also climbed 4.96 percent and 7.27 percent each.

Categories: Finance Shipbuilding

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