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Key Points

South Korean shipping stocks took a hit on Tuesday as investors worried about a global trade slowdown linked to U.S. tariff policies. HMM shares dropped 0.7% while Pan Ocean fell 1.0%, with Samsung Securities downgrading the sector to neutral. Meanwhile, Hanmi Pharmaceutical bucked the trend by rising 2.15% after announcing a technology transfer deal with Gilead Sciences. The agreement grants Gilead exclusive worldwide rights to Hanmi's oral absorption enhancer Encequidar.

Key Points: South Korean Shipping Stocks Fall on US Tariff Trade Slowdown

  • HMM shares fell 0.7% as Samsung Securities cut its rating to hold from buy
  • Pan Ocean and Korea Line Corp shares also declined over 1% and 0.1% respectively
  • Hanmi Pharmaceutical gained 2.15% after signing global deal with Gilead Sciences
  • Analyst cited prolonged container freight declines and bulk rate corrections amid US tariffs
2 min read

South Korean shipping stocks weaken on tariff worries

HMM and Pan Ocean shares drop as Samsung Securities downgrades sector, while Hanmi Pharmaceutical rises on Gilead Sciences technology transfer deal.

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

Seoul, September 30

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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Reader Comments

P
Priya S
Interesting to see Hanmi Pharma doing well with the Gilead deal! This is exactly what Indian pharma companies should focus on - technology transfers and global partnerships. We have the capability, just need more such strategic moves. 💊
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Arjun K
The shipping sector downturn is concerning for global trade. As someone working in exports, I can feel the impact of these tariff policies. Hope our Indian shipping companies are better prepared for such volatility. 🚢
S
Sarah B
While the article focuses on Korean companies, this has implications for Indian markets too. Our shipping and pharma sectors are watching these global trends closely. The analyst downgrade of HMM shows how quickly sentiment can change in these volatile times.
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Vikram M
The contrast between shipping and pharma sectors is striking! While one suffers from global trade issues, the other thrives through innovation partnerships. This is a lesson for Indian businesses - diversify and innovate to stay resilient. 📈
M
Michael C
Respectfully, I think the article could have provided more context about how these Korean developments might affect Indian markets directly. Many Indian investors track global markets, and such connections would be helpful for better decision-making.

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