[Market Focus] Czech Nuclear Power Plant Export Deal at Risk; Related Stocks Plunge

Shares of Doosan Enerbility and other Czech nuclear power plant-related stocks fall on uncertainty over export contract

Shares related to the Czech nuclear power plant sector were weak in early trading on May 7. Investor sentiment appears to have deteriorated, particularly among participating companies, as the possibility of the Czech nuclear power plant export contract falling through has increased.

As of 9:42 a.m. on this day, Doosan Enerbility was trading at 26,600 won on the Korea Exchange, down 3.97% from the previous trading day.

Other companies such as Korea Power Engineering Company (-5.15%), Daewoo Engineering & Construction (-2.77%), and Korea Plant Service & Engineering (-2.66%) were also declining. These companies are participants in the Czech nuclear power plant bidding consortium led by Korea Hydro & Nuclear Power (KHNP).

Previously, a Czech court accepted a preliminary injunction request from Electricite de France (EDF), which had lost the bidding competition, and ordered a halt to contract signing between KHNP and a subsidiary of CEZ, the Czech power company. As a result, the contract signing ceremony that was originally scheduled to take place in Prague on May 7 (local time) has become uncertain. It appears unlikely that a contract will be signed between KHNP and the CEZ subsidiary until a formal ruling is issued.