The UP World LNG Shipping Index, the world’s only stock index focused on LNG shipping companies, gained 8.23% last week. US stocks represented by the S&P 500 Index gained 1.55%.
Regular rebalancing of the UP Index took place last week. Teekay LNG Partners (TGP) was removed from the index, so there are 18 constituents now. Since the start of the index, four companies or partnerships were removed, and five constituents were added.
The weight of TGP was above 12%, so it was a significant constituent. As its price did not move from November, it reduced the volatility of the whole index.
The delisting of TGP increased the weight of Golar LNG Limited (NASDAQ: GLNG) so much that it has to be limited to 20%, which is the maximum weight that a single constituent can have. Complete changes of weight are published at up-indices.com.
Successful LNG shipping stocks
Last week was very successful for LNG shipping stocks. Especially Japanese stocks moved up very sharply – NYK Line (TSE: 9101) gained over 18%, MOL (TSE: 9104) added 11.6%. “K” Line (TSE: 9107) rose “only” by 5%.
We say “only” for the “K” Line rise as there were much more successful companies: Korean SM KLC (KRX: 005880) added 7.7%, Shell (NYSE: RDS.A) gained 8%, New Fortress Energy (NASDAQ: NFE) rose for 8.5% or Dynagas LNG Partners (NYSE: DLNG) added 6.6%.
Companies that lost
Only two companies lost: Russian PAO Sovcomflot (ME: FLOT), which continues in a downtrend with a loss of 4.1%, and Belgian Exmar NV (BSE: EXM) declined by 2.9% at the long-time resistance level.
UP World LNG Shipping Index
UP World LNG Shipping Index is a rules-based stock index family designed to show and measure the performance of world publicly traded companies involved in maritime transport of liquefied natural gas (LNG). This unique index covers 18 companies and partnerships from countries worldwide like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers more than 65% of the world’s LNG carrier fleet.
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