Hanwha Ocean order failure sends shipbuilders and leveraged products sharply lower, while Samsung SDS gains
7After Hanwha Ocean failed to win the Canadian submarine contract, Hanwha Ocean fell about 20%, while shipbuilders and leveraged ETFs also weakened. On the same day, Samsung SDS rose 6% on AI expectations, and securities firms raised their target prices.
7In the South Korean stock market, volatility increased as news of Hanwha Ocean's failure to win the Canadian submarine contract coincided with a sharp decline in some leveraged products. Hanwha Ocean fell 20%, while the 'Samjeon·Nix' leveraged product plunged 13%.
The Canadian prime minister said that in 7 month, 6 day, TKMS and Hanwha had both met all the demanding requirements and that the competition was extremely close. The remarks suggest that the contract competition had been closely contested.
Hanwha Ocean plunged immediately after failing to win the contract, and major shipbuilders also weakened. HD Hyundai Heavy Industries fell by 5%.
Securities firms also expressed buying opinions when Hanwha Ocean’s share price corrected. Some securities firms adjusted their relevant target prices.
Meanwhile, Samsung SDS showed % strength on expectations for its AI business,6and securities firms successively raised their target prices. The stock showed an upward trend during the session on the news.
The market also saw weakness in leveraged products. Among leveraged 14products, 13products were counted as having fallen below their listing prices.
Whether there would be additional announcements related to order results during the trading day, as well as institutional trading flows, remained a focus of investor attention. 7By the market close, this trend had continued.