Samsung Heavy Leads South Korean Yard Gains

Samsung Heavy Industries Co., led advances among South Korean shipbuilders in Seoul trading on expectations second-quarter profit will increase as they build more vessels at higher prices, Bloomberg reported

Samsung Heavy advanced 5.1 percent, the most in more than two months, to 40,600 won as of 11:52 a.m. Hyundai Heavy Industries Co., climbed 3.2 percent, to 323,500 won.

Shipyards in are winning orders to build vessels at record prices for a fifth year as shipping lines bet on a rebound in global trade. Shipbuilders are also charging more as they pass on some of the costs arising from record steel prices to their customers.

The Clarkson Index, which tracks the average price for all types of ships, rose to 187 on July 7 from 186 a week ago. That measure was unchanged in the shipbroker's research dated July 11.

Source: Bloomberg