Domestic shipbuilding stocks are posting broad gains after the US Donald Trump administration unveiled its blueprint for reviving the shipbuilding industry.
As of 9:23 AM on Feb. 19, Hanwha Ocean (042660) is trading at 138,700 won, up 6.86% (8,900 won) from the previous trading day.
Shipbuilding stocks are posting broad gains, including HD Hyundai Heavy Industries (6.81%), HD Korea Shipbuilding & Offshore Engineering (4.78%), and Samsung Heavy Industries (3.61%).
The strength in shipbuilding stocks is interpreted as the impact of the White House’s announcement on the 13th (local time) of the ‘Maritime Action Plan’ (MAP), a comprehensive government-wide guideline for rebuilding the nation’s shipbuilding industry.
The guideline includes provisions allowing initial contract volumes to be built at allied nations’ shipyards until US shipyards achieve self-sufficiency, which appears to reflect expectations that regulations that have been obstacles to domestic shipbuilders’ entry into the US market may be eased.
