Hyundai Heavy Industries Co., the world’s biggest shipyard, fell the most in almost three years in Seoul trading as Korean shipbuilders tumbled on concerns that an economic slowdown and European debt crisis may sap orders.
The shipbuilder dropped 11 percent, the biggest decline since Nov. 20, 2008, at close in Seoul. Daewoo Shipbuilding & Marine Engineering Co. fell 14 percent and Hanjin Heavy Industries & Construction Co. declined by the daily 15 percent limit, the worst performer on the MSCI AC Asia Pacific Index.
Ship orders may slow this year because of concerns about world trade and a possible tightening of credit by European lenders, among the biggest financiers of new ships, said Cho In Karp, head of research at Heungkuk Securities Co. in Seoul. Lars Frisell, chief economist at Sweden’s financial regulator, said this week it won’t take much for interbank lending to freeze and the Wall Street Journal reported that regulators are scrutinizing the U.S. operations of Europe’s biggest banks.
“There’s panic in the market,” Cho said. “Concerns about an economic slowdown could drastically cut orders for new vessels for this year.”
Morgan Stanley reduced its forecast for global growth this year, citing an “insufficient” policy response to Europe’s sovereign-debt crisis, weaker confidence and the prospect of fiscal tightening.
Samsung Heavy Industries Co., the world’s second-largest shipyard, dropped 11 percent and Hyundai Mipo Dockyard (010620) Co., a unit of Hyundai Heavy, fell 6.6 percent.
Global ship orders fell 44 percent to 43 million deadweight tons in the first seven months of the year, according to Clarkson Plc, the world’s largest shipbroker.
Hyundai Heavy, based in Ulsan, South Korea, separately said it had won an order to build two liquefied-natural gas carriers from Dynagas Ltd.