Hanwha Ocean shares are falling sharply in intraday trading after the company lost its bid for Canada's submarine program.
As of 11:58 a.m. Tuesday, Hanwha Ocean shares were trading at 89,000 won ($58.5) on the Kospi, down 23.34 percent, or 27,100 won, from the previous session's closing price of 116,100 won. The stock opened at 92,800 won.
Hanwha Ocean shares had surged 8.61 percent on Monday on expectations ahead of the announcement of the preferred bidder for the Canadian Patrol Submarine Project (CPSP), but investor sentiment froze as news of the failed bid spread.
Canadian Prime Minister Mark Carney announced Monday, Canadian local time, at the naval base in Halifax, Nova Scotia, that TKMS had been selected as the preferred bidder for the CPSP. The expectations built up the previous day were dashed, causing Hanwha Ocean shares to take a dive.
Carney added, however, that Canada retains the authority to open negotiations with Hanwha Ocean, the runner-up, should talks with TKMS fall through.
