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Korean shipyard and shipping shares tumble

Korean shipyard and shipping shares tumble

Seoul: Korean stocks plunged downwards today as investors dumped shipyard, shipping and other blue-chip shares because of mounting worries over China's stock market bubble and high oil prices, reports News. Analysts began to warn of a possible bubble burst after China's Shanghai composite index dropped 3.5% yesterday, bucking the trend of steep gains over past years.

Leading shipyard Hyundai Heavy Industries saw a 2.55% decrease in share price to 458,000 won ($500) while Samsung Heavy Industries fell 2.68% to 50,900 won. Similarly, liner giants Hanjin Shipping and Hyundai Shipping plunged 5.34% to 55,000 won and 6.92% to 47,100 won respectively.

"Investors were probably rattled by the previous day's plunge in Chinese stocks along with skyrocketing oil prices. They dumped shares in China-related companies such as shipbuilders and steelmakers," said Kim Hak-gyun, an analyst at Korea Investment and Securities. "The bearish sentiment also coincided with mounting worries that the main index has risen excessively in recent weeks."  [19/10/07]