Shares of Singapore-listed Chinese shipbuilder Cosco Corp (Singapore) (COSC.SI) fell as much as 2.6% on Wednesday to a two-month low, weighed by news that Korea Line Corp (003490.KS) had filed for receivership.

At 10:20 a.m., shares of Cosco were down 2.2% at $2.26 with over 5.1 million shares changing hands.

South Korea's Korea Line said on Tuesday it had filed for receivership, squeezed by a sharp drop in dry-bulk rates and growing global vessel deliveries ordered before the economic turmoil of 2008.

 

“This has put some pressure on Cosco, which owns dry bulk ships, as Korea Line has filed for receivership because of falling Baltic rates. Investors are selling as things are starting to look skittish,” said a local trader.