Hanwha Ocean fails to win the Canadian submarine contract, with its 7-day share price 20% lower
Hanwha Ocean's failure to win the Canadian submarine contract sent its 7-day share price 20% lower, while HD Hyundai Heavy Industries also weakened by 5%. Meanwhile, Samsung SDS rose 6% on expectations for its AI business, and President Lee Jae-myung met with the Canadian prime minister and emphasized expanding practical cooperation.
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Hanwha Ocean was excluded from the Canadian submarine contract and its 7-day share price fell 20%. Shipbuilding and defense-related stocks also weakened across the board that day, while HD Hyundai Heavy Industries fell by 5%.
Some securities firms recommended buying Hanwha Ocean shares on corrections following the sharp drop. That day, the securities industry released reports announcing target-price adjustments and warning of increased short-term volatility.
The Canadian prime minister said that 6TKMS and Hanwha had both met the demanding requirements, describing the competition as extremely close. The remarks suggested that the contract race had ended by a narrow margin.
Samsung SDS, buoyed by expectations for its AI business, 7the stock price rose 6%, and securities firms were observed raising their target prices one after another. Companies are reassessing their investment opinions based on AI-related growth drivers.
President Lee Jae-myung met with the Canadian prime minister during the same period and mentioned expanding practical cooperation. It was reported that cooperation agendas in the defense and industrial sectors were discussed in talks between the leaders of the two countries.
Across the market, the defense contract competition and export negotiations are drawing attention in the wake of these results. Investors appear to be waiting for disclosures and additional announcements.