Canadian submarine order falls through, Hanwha Ocean and shipbuilding stocks plunge
With news emerging that a South Korean company failed to win the Canadian submarine project, Hanwha Ocean 6in pre-market trading plunged by 18%, while shipbuilding stocks including HD Hyundai Heavy Industries also weakened. During the same period, Samsung Electronics reported 2quarter operating profit of 89trillion 4,000hundred million won, a record high, but fell by 2% in pre-market trading.
Domestic shipbuilding-related stocks plunged on news that the Canadian submarine project order had fallen through. Hanwha Ocean plunged by 6in pre-market trading on 18%, while HD Hyundai Heavy Industries was down 7% intraday on 5The market focused on the fact that the order was directly linked to shipbuilding and defense-industry revenue.
The Canadian prime minister said on 6that both TKMS and Hanwha had met the demanding requirements and that the contest had been extremely close. The remarks confirmed that the bidding competition had been closely contested.
Apart from the weakness in shipbuilding stocks, large technology stocks showed mixed movements. Samsung Electronics announced that 2quarter operating profit was 89trillion 4,000hundred million won, the highest level ever, but its share price fell by 2% in pre-market trading.
Samsung SDS, buoyed by expectations for its AI business,7saw its stock rise by 6approximately %, while securities firms raised their target prices one after another. Some technology stocks showed differentiated trends within the sector depending on earnings and business momentum.
In the market that day, disclosures related to shipbuilding and defense and quarterly earnings announcements from major companies had a simultaneous impact, leading to mixed performances across sectors. Investors are watching the related disclosures and additional announcements.