Shipping industry shows strong stock prices

In spite of low achievements in the third quarter and an unpredictable economy, stock prices for shipping companies are still bullish day on day.

According to the shipping industry on December 2, Hanjin Shipping closed at 4,445 won November 30, approaching its record high 4,970 won for this year set in August. The price represents a 15.4% jump compared to early November. Foreign investors continued buying into Hanjin, increasing their stake to 6.98% from 4.58%.

Hyundai Merchant Marine rose above the 2,000 won mark, growing by 13.8% to 2,050 won on November 30 from 1,800 won in early November. Korea Line skyrocketed 40.9% to 3,580 won at the end of November compared to 2,540 won a month earlier.

These big 3 shipping companies face an unpredictable future because of gloomy expectations of a late recovery in the second half next year as well as large currency exchange losses up to the third quarter this year.

Some analysts attributed the phenomenon to China's WTO entry. A working level officer in the shipping industry said, "If trade with China in steel, cars, and petroleum expands, the shipping industry will benefit considerably. These stock price increases are a reflection of extreme confidence despite poor sales results."