S. Korea's Hyundai Mipo shares drop after ship delivery delays

Shares of South Korean company Hyundai Mipo Dockyard Co., a unit of the world's largest shipbuilder, dropped by more than 5 percent on Monday after it agreed to delay delivery of 19 vessels. Shares of Hyundai Mipo were trading at 103,000 won on the Seoul bourse as of 10:52 a.m., down 5.05 per cent.
On Friday, the shipbuilder said two Asian shipping firms have asked it to delay the delivery of 14 ships and a European shipowner demanded the postponement of delivery for five others by more than a year.
Global shipping lines have been asking for delays as a trade boom ended last year leading to a glut in vessels.
"Any meaningful turnaround in the shipbuilding sector is unlikely for the time being," said Kim Soo-jin, an analyst at Eugene Investment & Securities. "Hyundai Mipo has rebounded from its bottom recently, but dried-up new orders may limit any further gains in share prices."
Shares of Hyundai Mipo fell to an yearly low of 78,200 won on Dec. 1, but since then have gained more than 30 per cent.