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[Market Now] Hanjin Shipping tanks; Korean Air inches up

By Korea Herald
Published : April 25, 2016 - 10:41
Shares of Hanjin Group’s key companies moved in opposite directions Monday, as investors gauged the expected impact of its shipping affiliate’s pursuit of a creditor-led rehabilitation.

Hanjin Shipping tanked on the main Seoul bourse, with its stocks trading at 1,845 won per share as of 10:05 a.m., 29.56 percent lower than the previous close. Hanjin KAL, the group’s holdings firm, soared 12.37 percent to 21,350 won, while Korean Air Lines climbed 2.96 percent to 31,300 won. 



Hanjin Shipping, the country’s top container carrier and the world’s ninth by capacity, said Friday it will push for a debt settlement agreement with creditors, acknowledging that its debt problems are so grave that it won’t be able to resolve alone.

Stock analysts from major local brokerage houses said the decision clears up the key uncertainty that has been weighing down on other Hanjin Group companies in the past months which had been mobilized for supporting Hanjin Shipping.

“Hanjin Shipping’s decision to seek a debt settlement agreement with creditors lowers the possibility of Korean Air providing additional support to the shipper,” Shin Min-seok of Hana Financial Investment said in a report.

By Lee Sun-young (milaya@heraldcorp.com)

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