STX shares jump after ending creditor-led restructuring program
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))