Market Weekly: Dec 4 Dec 8 2017


Samsung Heavy Industries plunged the most on record in Seoul trading after forecasting surprise losses and announcing a share sale plan, underscoring the bleak outlook for the global shipbuilding industry.

The world’s third-largest shipbuilder said Wednesday it plans to raise 1.5 trillion won (S$1.86 billion) by selling new shares in a rights offering. Samsung Heavy, saddled with 3.3 trillion won of short-term debt, expects demand for new vessels and offshore projects to continue shrinking and that will push the company into losses this year and next, compared with analyst estimates for a profit.

Shares of Seongnam, South Korea-based Samsung Heavy plunged 29 per cent to close at 8,960 won in Seoul, giving it a market value of about US$3.2 billion. Hyundai Heavy declined 6.2 per cent and Daewoo Shipbuilding dropped 2.8 per cent.