The rally extended to smaller industry players, with Samsung Heavy Industries climbing more than 7% and Hanwha Ocean adding 4%. This rebound arrives following a brutal quarter that erased significant market value, leaving these stocks trading at levels that analysts now categorize as deeply oversold. Data from FactSet confirms that shares for these firms had tumbled between 20% and 30% over the last three months.
In section Market Quotes
South Korean Shipbuilders Rebound After Steep Sell-Off
After three months of heavy losses, South Korean shipbuilding giants saw a sharp market reversal on Thursday as investors pounced on depressed valuations. HD Hyundai Heavy Industries led the charge, surging over 8% in afternoon trading, signaling a sudden end to the sector's prolonged downward trajectory on the Kospi.
According to SK Securities analyst Han Seung-han, the recovery is driven by a disconnect between current share prices and fundamental earning power. With order backlogs secured for the next three years, these shipyards face a period of guaranteed activity. Han expects this momentum in contract acquisitions to persist through the remainder of the year, potentially stabilizing the sector as the market recalibrates to reflect rising profitability.
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