[Market Focus] Shipbuilding Stocks Surge on Speculation of Trump Visiting Korean Shipyards

Shares of the three major Korean shipbuilding companies are surging, with shipbuilding stocks collectively showing strong gains, amid speculation that Donald Trump, President of the United States, may visit a domestic shipyard during his visit to South Korea.

Donald Trump, President of the United States. Photo by UPI News Agency

As of 9:47 a.m. on October 27, shares of HD Hyundai Heavy Industries were trading at 631,000 won, up 37,000 won (6.23%) from the previous trading day. The stock climbed as high as 640,000 won during the session, hitting a new 52-week high.

At the same time, shares of HD Korea Shipbuilding & Offshore Engineering (up 3.69%), Samsung Heavy Industries (up 13.71%), HD Hyundai Mipo Dockyard (up 6.60%), Hanwha Ocean (up 5.10%), HJ Shipbuilding & Construction (up 12.54%), and Dongil Steel Lux (up 4.86%) were all strong performers.

Both Samsung Heavy Industries and Hanwha Ocean reached intraday highs of 28,450 won and 1,435,000 won, respectively, with all of the so-called "Big Three" shipbuilding stocks hitting new record highs.

Within the industry, there is speculation that President Trump, who is visiting South Korea on October 29 to attend the Asia-Pacific Economic Cooperation (APEC) summit, may visit a domestic shipyard.

Another factor drawing attention is the geographical proximity of major domestic shipyards, such as the Ulsan headquarters of HD Hyundai Heavy Industries and the Geoje facility of Hanwha Ocean, to Gyeongju, where APEC will be held.

Additionally, investor sentiment appears to be buoyed by expectations for a Korea-U.S. tariff negotiation agreement during this summit, as well as the view that participation by Korean shipbuilders is essential for the U.S. shipbuilding industry restoration initiative (MASGA), which could significantly benefit shipbuilding stocks.