The price of Hyundai Rotem Co. shares, which had continued to reach a new record high after the recent inter-Korean summit, plunged due to a block deal based on profit taking.
Hyundai Rotem closed at 27,000 won (US$25.10), down 17.18 percent, on May 3 after plunging nearly 21 percent from the previous day during the intra-day trading. With the news that Morgan Stanley Private Equity (PE) sold 8.23 million shares of Hyundai Rotem in a block deal, the company’s stock prices nosedived.
Morgan Stanley PE sold a large stake in Hyundai Rotem possibly to realize a profit. With rising expectations for the inter-Korean summit, the price of Hyundai Rotem shares surged as much as 85 percent for 10 trading days until the 2nd. Foreign investors net sold 93.7 billion won (US$87.12 million) worth of the shares on the 3rd as well to take profits.
As Hyundai Rotem, one of the largest train manufacturer in the nation, saw its price decrease, other locomotive and train makers were adversely affected. The stock price of Puloon Technology Inc., a railroad system provider, dropped a whopping 12.9 percent compared to the previous day.