Woori Investment & Securities today upgraded its recommendation on shipbuilders from neutral to positive, saying shipbuilding market would make a turn around in the second half.
Analyst Yoo Jae-Hoon said that shipping market would bottom out and cancellation of orders on the book would less occur by liquidity crisis in European financial institutes being relieved.
Also, high oil price has firmed up new order momentum for offshore plant and restriction on CO2 emission in Europe would cause demolition and help recovering newbuilding commercial ship market.
Woori's Yoo said, "Although a considerable amount of time would be needed for ship financing market to fully recover, liquidity problems in Europe is getting relieved and the worst condition seems to have passed."
Added that newbuilding contracts for tanker and containership, in particular, would start from the second half this year, as after the meeting of EU Finance ministers on CO2 emission regulation would boost demolition and demand for highly-efficient newbuilding replacements.