LNG shipping stocks: Red is back, mentions an LNG Shipping Stock news source.
Performance of LNG shipping companies
Last week, the UP World LNG Shipping Index (UPI) lost 2.61 points or 1.70%, closing at 150.83 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a loss of 2.39%. You can find both indices in the image below.
The recent drop in UPI’s stock market rally happened before it could reach a higher high. This doesn’t necessarily mean the end of the trend, but the resistance around 150 points that UPI has repeatedly encountered is still a factor to consider. However, compared to the recent declines of SPX, UPI’s attempt at growth looks positive.
This week, the rising stocks were very limited, with only four companies able to resist and gain. SM Korea Line Corporation (KRX: 005880) added 2%, Chevron (NYSE: CVX) gained 1.7%, Excelerate Energy (NASDAQ: EE) rose by 1.3%, and MISC Bhd (KLSE: 3816) strengthened by 0.7%. Although Chevron looks promising, the other companies are not expected to grow much.
Negative sentiment in equity markets
The negative sentiment in equity markets mostly contributed to UPI’s decline, along with geopolitical nervousness and rising bond yields. Qatar’s Nakilat (QSE: QGTS) was the biggest loser, down 7.4%. The other declines were milder, with the Japanese “K” line (TSE: 9107) writing off four percent. Three constituents recorded a loss of around 3%: Dynagas LNG Partners (NYSE: DLNG) lost 3.5%, Capital Product Partners (NASDAQ: CPLP) lost 3.1%, and New Fortress Energy (NASDAQ: NFE) lost 2.8%.
The other group of three fell about 2.5%, including NYK Line (TSE: 9101), Cool Company (NYSE/OSE: CLCO), and Golar LNG (NASDAQ: GLNG). The last two companies whose declines are worth noting are Flex LNG (NYSE/OSE: FLNG) and bp (NYSE: BP). The first lost 1.3%, and the second lost 1 percent.
Summary: The decline complicated the smooth way up, but didn´t make it impossible. Positives are on UPI’s side, but the direction of other stock indices will be very important.
About: UP World LNG Shipping Index, established in 2020, is a rules-based stock index family designed to show and measure the performance of worldwide publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 18 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers over 65% of the world’s LNG carrier fleet. UP Index is a premium service. We offer freemium (the basic chart of the UP Index and S&P 500 index) and trial access to all charts.
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Source: LNG Shipping Stock
