Short sellers wager shipbuilder misery to deepen

Seoul

SOUTH Korean shipbuilders, last year's biggest stock-market losers, are the most popular target for short sellers in 2015 as falling crude hurts oil-rig demand.

Bearish wagers used borrowed stock against Hyundai Mipo Dockyard Co rose to 7.3 per cent of shares outstanding on Jan 8, the highest level on the Kospi index and up from 4.3 per cent a year ago, according to data compiled by Bloomberg and Markit Group Ltd. Short interest in Daewoo Shipbuilding & Marine Engineering Co and Hyundai Heavy Industries Co has more than tripled in the past 12 months.