 |
This photo provided by HMM on Sept. 13, 2020, shows HMM's container carrier. (HMM) |
Shares in South Korean shippers and shipbuilders rallied on Monday on expectations that strong freight rates may work to improve their earnings and trigger more ship demand, analysts said.
The Shanghai Containerized Freight Index, a barometer of global freight rates, came to a new high of 1,664.56 last Friday, according to industry sources. The previous record was 1,583.18 posted in July 2010.
"Today's sharp advances in shippers and shipbuilders don't mean they will continue to turn for the better. The advances are temporary," said Hwang Eo-yeon, an analyst at Shinhan Financial Investment Co.
Monday's stock rallies came from a combination of increased freight rates and eased uncertainties over a possible delay in fiscal policy to boost the US economy after the election of Joe Biden as the next US president, Hwang added.
Shipbuilding holding company Korea Shipbuilding & Offshore Engineering closed up 8.69 percent at 90,100 won ($80.70).
No. 2 shipbuilder Daewoo Shipbuilding & Marine Engineering rose 5.53 percent to 23,850 won, while Samsung Heavy Industries ended at 5,600 won, up 8.32 percent from the previous session.
Korea Line, a bulk carrier, rose 29.75 percent to 2,115 won ($1.90), with No. 1 shipper HMM up 16.1 percent to 11,900 won.
Another bulk carrier, Pan Ocean, closed at 4,220 won, rising 21.09 percent, and KSS Line rose 6.11 percent to 10,250 won.
Local shipping companies are expected to see a rise in freight rates next year amid soaring demand as major global shippers reduced their business due to the coronavirus pandemic, industry watchers said.
They also said South Korean shippers will benefit from growing demand helped by the year-end shopping season in the United States, including Black Friday on Nov. 27. (Yonhap)
