Hanwha Ocean plunges on failed Canadian submarine bid; shipbuilders weaken across the board
As news emerged that Hanwha Ocean had failed to win the Canadian submarine project, 7 month 7 trading saw Hanwha Ocean fall sharply, while shipbuilding stocks weakened across the board. Samsung SDS, meanwhile, strengthened on expectations for its AI business.
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As news emerged that Hanwha Ocean had failed to win the Canadian submarine contract, related stocks plunged in the 7 month 7 trading session. The bidding result, which had drawn strong investor interest, was immediately reflected in the market.
In the premarket, Hanwha Ocean plunged in the 18% range, and in regular trading Hanwha Ocean fell as much as 20%. During the same period, HD Hyundai Heavy Industries weakened in the 5% range.
The Canadian prime minister said that both TKMS and Hanwha had met the demanding requirements and explained that the bidding contest had been extremely close. The remarks constituted an explanation of the basis for the bidding result.
Some securities firms recommended buying Hanwha Ocean at an appropriate time in connection with this adjustment. The recommendation was to buy in response to a short-term correction.
Meanwhile, Samsung SDS rose amid heightened expectations for its AI business, 7month 7day's session 6rose by approximately %. Securities analysts were reported to have raised their target prices for Samsung SDS across the board.
The market saw diverging share-price trends between the shipbuilding and IT services industries, while share-price volatility among related companies increased.