April 18, 2024
Industrials
Doosan Heavy stocks plunge
[THE INVESTOR] Stocks of Doosan Heavy Industries & Construction traded sharply lower on June 28 after the government said it would halt the construction of two nuclear reactors for three months.
Doosan Heavy stocks were trading at 20,750 won (US$18) on the Seoul bourse as of 10:21 a.m., down 3.94 percent from the previous session’s close and nearing its lowest level in one year.
On June 27, the government said the construction of the two reactors -- Shin Kori No. 5 and Shin Kori No. 6 -- will be suspended so policymakers can decide whether to scrap or move forward with the building project.
“Uncertainties will continue, and financial damage is inevitable should the project be scrapped,” said Yoo Je-hyun, an analyst at Mirae Asset-Daewoo Securities.
The project to construct two nuclear reactors in the region near Busan, some 400 kilometers southeast of Seoul, has been led by a consortium, including Doosan Heavy and Samsung C&T.
The overall potential losses, if the project is nixed, are estimated at 2.6 trillion won, according to the government.
By Alex Lee and newswires (alexlee@heraldcorp.com)
Doosan Heavy stocks were trading at 20,750 won (US$18) on the Seoul bourse as of 10:21 a.m., down 3.94 percent from the previous session’s close and nearing its lowest level in one year.
On June 27, the government said the construction of the two reactors -- Shin Kori No. 5 and Shin Kori No. 6 -- will be suspended so policymakers can decide whether to scrap or move forward with the building project.
“Uncertainties will continue, and financial damage is inevitable should the project be scrapped,” said Yoo Je-hyun, an analyst at Mirae Asset-Daewoo Securities.
The project to construct two nuclear reactors in the region near Busan, some 400 kilometers southeast of Seoul, has been led by a consortium, including Doosan Heavy and Samsung C&T.
The overall potential losses, if the project is nixed, are estimated at 2.6 trillion won, according to the government.
By Alex Lee and newswires (alexlee@heraldcorp.com)
