Daewoo Shipbuilding & Marine Engineering Co, the world's third-largest shipbuilder, led declines among shipyards trading in South Korea and Singapore on concern new orders are slowing.
Tough times: Daewoo Shipbuilding said a European customer cancelled a 619b won contract for eight ships that can each carry 4,800 20-foot containers
Daewoo Shipbuilding dropped 3.7 per cent to 34,150 won, the lowest price in more than four months, as of 2:05pm in Seoul. Hyundai Heavy Industries Co, the world's largest shipbuilder, fell 4 per cent to 264,500 won.
Cancellations at Daewoo Shipbuilding and Hyundai Mipo Dockyard Co last week raised concerns slowing global economic growth may end five years of record orders for shipyards. Shipping lines may also have difficulties raising funds for new vessels, according to analysts.
'Investors are having doubts about future orders,' said Jerry Kang, an analyst at Korea Investment & Securities Co in Seoul. 'Some are even starting to doubt the quality of orders shipyards have already received.' He rates the shipbuilding industry 'overweight'.
Daewoo Shipbuilding said on Aug 1 a European customer cancelled a 619 billion won (S$836 million) contract for eight ships that can each carry 4,800 20- foot containers. The order was from a German charter Niederelbe Schiffahrtsgesellschaft mbH & Co, also known as NSB, Mr Kang said. Daewoo Shipbuilding declined to comment.
Hyundai Mipo, the world's fourth-largest shipyard, said the same day another European buyer pulled a 197 billion won order for four chemical carriers. The slots left empty were filled by an order for eight bulk carriers.
Hyundai Mipo dropped 3.5 per cent to 178,000 won. Samsung Heavy Industries Co, the world's second-biggest shipyard, slipped 3.4 per cent to 34,300 won. STX Shipbuilding Co, the owner of Europe's largest shipyard Aker Yards ASA, fell 5 per cent to 25,550 won.
Shipyards traded here also dropped. Cosco Singapore fell 6.7 per cent to $2.77 here. Yangzijiang Shipbuilding Holdings Ltd, the first Chinese shipyard to trade shares in Singapore, slipped 7.2 per cent to 71 cents.
Tough times: Daewoo Shipbuilding said a European customer cancelled a 619b won contract for eight ships that can each carry 4,800 20-foot containers
Daewoo Shipbuilding dropped 3.7 per cent to 34,150 won, the lowest price in more than four months, as of 2:05pm in Seoul. Hyundai Heavy Industries Co, the world's largest shipbuilder, fell 4 per cent to 264,500 won.
Cancellations at Daewoo Shipbuilding and Hyundai Mipo Dockyard Co last week raised concerns slowing global economic growth may end five years of record orders for shipyards. Shipping lines may also have difficulties raising funds for new vessels, according to analysts.
'Investors are having doubts about future orders,' said Jerry Kang, an analyst at Korea Investment & Securities Co in Seoul. 'Some are even starting to doubt the quality of orders shipyards have already received.' He rates the shipbuilding industry 'overweight'.
Daewoo Shipbuilding said on Aug 1 a European customer cancelled a 619 billion won (S$836 million) contract for eight ships that can each carry 4,800 20- foot containers. The order was from a German charter Niederelbe Schiffahrtsgesellschaft mbH & Co, also known as NSB, Mr Kang said. Daewoo Shipbuilding declined to comment.
Hyundai Mipo, the world's fourth-largest shipyard, said the same day another European buyer pulled a 197 billion won order for four chemical carriers. The slots left empty were filled by an order for eight bulk carriers.
Hyundai Mipo dropped 3.5 per cent to 178,000 won. Samsung Heavy Industries Co, the world's second-biggest shipyard, slipped 3.4 per cent to 34,300 won. STX Shipbuilding Co, the owner of Europe's largest shipyard Aker Yards ASA, fell 5 per cent to 25,550 won.
Shipyards traded here also dropped. Cosco Singapore fell 6.7 per cent to $2.77 here. Yangzijiang Shipbuilding Holdings Ltd, the first Chinese shipyard to trade shares in Singapore, slipped 7.2 per cent to 71 cents.