Marine stocks ending strong week with a pop

US-listed shares benefit from ‘relief rally’ with Eagle Bulk skyrocketing.

Eagle Bulk Shipping led shipping stocks in a sharp Friday rally at the close of an already strong week as earnings data and rising broader markets appeared to take the edge off of investor uncertainty.

The Dow Jones Global Shipping Index jumped was up by 2.4% at $511.13 in early-afternoon trading on Friday, putting it 9.7% higher than its close at the end of last week.

New York-listed stocks were among the fastest rising shares today, with the Dow Jones US Marine Transportation Index rising by 3% to $201.94. That was an 8.6% increase since the end of last week.

Lots of winners

At least 14 shipping and offshore vessel shares were more than 10% at the close of trading in New York.

The biggest mover today is Eagle Bulk Shipping, which saw its shares rise by 89.5% to close at $1.29 as investors awaited word of restructuring talks with lenders that face a deadline today. The stock has gained 87% so far this week.

Navios Maritime Holdings rose by 33.4% Friday alone, bringing the price to $1.25 at the end of trading on the New York Stock Exchange.

amit.jpg Deutsche Bank analyst Amit Mehrotra

After yesterday’s close, Deutsche Bank analyst Amit Mehrotra issued a positive research note about the Angeliki Frangou-led bulker owner, declaring that it can fund cash calls for “the foreseeable future”.

Scorpio Bulkers jumped right alongside it, surging by 20% to $4.67. That means the bulk owner’s shares increased by 97.9% this week. .

Mehrotra told TradeWinds that US-listed shipping stocks are experiencing a “classic relief rally” as the fourth-quarter earnings season allows shipowners to update the market and allay some investor concerns.

But he emphasised that while the rising stock prices are better than they were last week, they remain very low.

“I think the market has still enormous, enormous uncertainty over the future of these companies,” he said.

Offshore vessel shares are also posting a strong rally, with Tidewater rising by 27.5% to $9.89 at the close.  That’s a 75.8% jump for the week.

Asia stocks jump

Shares in Asia also surged this week.

Tokyo’s TOPIX Marine Transportation Stock Price Index jumped 2.2% today and is up 12.3% for the week.

This week saw Tokyo-listed Meiji Shipping surge by 15.3% to close Friday at JPY 400 ($3.50).

It was a strong week for South Korea’s major shipbuilders.

Hanjin Heavy rises

South Korean Shipbuilding Hanjin Heavy Industries posted a major rally, surging by 11.7% to close at KRW 3,735 ($3.12). That represents a 16.9% rise for the week.

Rival Daewoo Shipbuilding & Marine Engineering saw its shares rise by 20% this week.

However, as TradeWinds reported earlier today, compatriot shipowner Hyundai Merchant Marine saw its shares plunge by 21% today to KRW 2,495. That’s a 14.6% weekly slump.

Singapore-listed shipbuilder Keppel also had a positive week, surging 18.2% since last Friday. Its shares are now worth $6.10 ($4.44) apiece.



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