STX shares jump after ending creditor-led restructuring program

HD-Hyundai Marine Engine

22/08/2018 02:04

** Shares of STX Corp  011810.KS  and STX Engine  077970.KS 
surge 30 pct and 27 pct, respectively, after the co said it has
ended a creditor-led debt restructuring program as of Tuesday
    ** Shares of STX Heavy Industries  071970.KS  jump 13 pct
    ** STX Corp used to lead five subsidiaries including STX
Offshore & Shipbuilding, STX Engine and STX Heavy Industries,
but the group had been under restructuring since May 2013 by
creditors led by the state-run Korea Development Bank (KDB)
    ** STX subsidiaries' outlook remains murky, considering KDB
has refused to issue refund guarantee necessary to win a
shipbuilding contract, says Kim Hyun, an analyst at Meritz
Securities 
    ** Stocks of South Korean shipbuilders such as Hyundai Heavy
Industries  009540.KS , Samsung Heavy Industries  010140.KS  and
Daewoo Shipbuilding & Marine Engineering  042660.KS  add 5.8
pct, 4 pct and 3.7 pct each, boosted by rising prices of
liquefied natural gas tankers
    ** However, STX subsidiaries can't build LNG carries, Park
Moo-hyun, an economist at Hana Financial Investment says, noting
the group has focused on mid-sized tanker market
    ** The broader KOSPI market  .KS11  was trading up 0.3 pct
as of 0100 GMT

 ((hayoung.choi.thomsonreuters.com@reuters.net))