SEOUL, KOREA - As STX Pan Ocean goes to court receivership against the expectations that it would be assumed by Korea Development Bank, shipbuilding and shipping shares fell in the Korea Exchange. On June 5, the price of STX Pan Ocean closed at 2,565 won declining to the daily limit of 15 percent.
All other STX Group companies were negatively affected by the news, with STX Corp. plunging also to the daily limit. All other companies including STX Engine (-13.75%), STX Offshore & Shipbuilding (-9.26%), and STX Heavy Industries (-6.17%) saw their share prices go south.
The hit was not limited to STX Group companies. Hyundai Merchant Marine and Hanjin Shipping dropped 4.72 and 1.78 percent respectively. Kim Minji, E*Trade Korea analyst, said, "In a situation where the shipping industry is unable to get out of a downturn for years, it also failed to raise their rates during the spring season. To add insult to injury, the STX Pan Ocean news hit the industry hard and it is unlikely the shipping shares would see recovery any time soon."
The same was true for shipbuilding shares. The prices of Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering fell 1.69 and 1.65 percent, respectively.
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