It will still not be late to invest in shipbuilders after seeing record-low newbuilding orders.
Uhm Kyung-Ah, an analyst at Shinyoung Securities in Korea said, "I won't change 'Neutral' recommendation for shipbuilding industries. Recently shipbuilders' shares have made a sudden rise, boosted by expectation that Eurozone Risk will recover. However, market has not been substantially improved."
She added, "Also, owners and energy companies are slowing down investment as they are pressured by economic recovery, therefore, there won't be as many orders as prospected before. As a result, it is suggested that buyers postpone investment in shipbuilders' shares after shipyards hitting the lowest level of order."