Hyundai Heavy Industries Co., the world's largest shipbuilder, led gains among shipyard stocks in Seoul trading after the won jumped the most in more than a decade, spurring optimism hedging losses will be reduced.
Hyundai Heavy gained by as much as its daily 15 percent limit to 157,500 won, the highest in almost two weeks. The stock traded at 156,500 won as of 11:24 a.m. in Seoul. Samsung Heavy Industries Co., the world's No. 2 shipbuilder, climbed by the daily 15 percent limit, the most since July 1999, to 16,900 won.
The Korean currency surged after the U.S. Federal Reserve agreed to provide $30 billion to South Korea's central bank to ease the shortage of U.S. currency at banks and companies. That may help shipbuilders reduce their losses from hedging on U.S.- denominated contracts for new vessels.
The won's gain is definitely good news for shipbuilders as it reduces the risk of making their financials seem bad when they're really not because of mark-to-market on their hedging contracts,'' said Cho In Karp, an analyst at Good Morning Shinhan Securities Co. in Seoul.
The won rose 10 percent to 1,295 won as of 11:12 a.m. in Seoul. That pared this year's loss to 28 percent, the worst among the 10 most-traded Asian currencies outside of Japan.
Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipyard, gained by as much as its daily 15 percent limit to 10,350 won. Hyundai Mipo Dockyard Co., a unit of Hyundai Heavy, climbed by as much as its daily 15 percent limit to 94,100 won.
Hyundai Heavy gained by as much as its daily 15 percent limit to 157,500 won, the highest in almost two weeks. The stock traded at 156,500 won as of 11:24 a.m. in Seoul. Samsung Heavy Industries Co., the world's No. 2 shipbuilder, climbed by the daily 15 percent limit, the most since July 1999, to 16,900 won.
The Korean currency surged after the U.S. Federal Reserve agreed to provide $30 billion to South Korea's central bank to ease the shortage of U.S. currency at banks and companies. That may help shipbuilders reduce their losses from hedging on U.S.- denominated contracts for new vessels.
The won's gain is definitely good news for shipbuilders as it reduces the risk of making their financials seem bad when they're really not because of mark-to-market on their hedging contracts,'' said Cho In Karp, an analyst at Good Morning Shinhan Securities Co. in Seoul.
The won rose 10 percent to 1,295 won as of 11:12 a.m. in Seoul. That pared this year's loss to 28 percent, the worst among the 10 most-traded Asian currencies outside of Japan.
Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipyard, gained by as much as its daily 15 percent limit to 10,350 won. Hyundai Mipo Dockyard Co., a unit of Hyundai Heavy, climbed by as much as its daily 15 percent limit to 94,100 won.