South Korean shipping stocks weaken on tariff worries

Seoul [South Korea], September 30 (ANI): South Korean shipping stocks fell on Tuesday as investors fretted over a prolonged global trade slowdown tied to U.S. tariff policies, while Hanmi Pharmaceutical rose after announcing a technology transfer deal with Gilead Sciences, the Pulse, the English service of Maeil Business Newspaper Korea reported on Tuesday.

HMM Co. shares slid 0.7 per cent to 20,450 won (USD 14.58), while Pan Ocean Co. and Korea Line Corp shares were down 1.0 per cent and 0.1 per cent, respectively.

Samsung Securities Co. cut its view on the sector to "neutral" and downgraded HMM to "hold" from "buy," lowering its target price to 22,000 won a share.

"Container freight rate declines are dragging on, and bulk rates face a post-peak correction, with risks compounded by U.S. tariff policies and ongoing new vessel deliveries," analyst Kim Young-ho said.

In contrast, Hanmi Pharmaceutical Co. gained 2.15 per cent to 380,500 won after saying it signed a global deal with Gilead Sciences and Hong Kong-based Health Hope Pharma (HHP) over its oral absorption enhancer Encequidar.

The agreement grants Gilead Sciences exclusive worldwide rights on Encequidar, with Hanmi Pharmaceutical and HHP to receive upfront, milestone, and royalty payments.

Korea Investment & Securities Co. said the 3.5 billion won upfront payment would be booked in the third quarter of 2025, easing earnings uncertainty, and maintained Hanmi Pharmaceutical as its "top pick" with a target price of 520,000 won.

HMM shares closed at 20,050 won, while Hanmi Pharmaceutical shares closed at 367,000 won. (ANI)

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