The UP World LNG Shipping Index (UPI) lost 2.97 points or 1.97%, closing at 147.86 points. This index tracks the performance of LNG shipping companies, says an article published on linked in.
Geopolitical risks
The #SP500 (SPX) index, representing U.S. stocks, experienced a loss of 2.53%. You can find both indices in the image above.
UPI has closed below the previous low, indicating that the last attempt to reach all-time highs has come to an end. This is due to negative sentiment on the stock markets, geopolitical risks, and the strength of sellers, which outweighs the will of buyers. However, the chart shows a better state of UPI than the declining SPX index, indicating the hidden power of the #LNG #shipping sector.
Sign of investors’ sentiment
The decline is mainly attributed to three companies. Chevron (NYSE: CVX) suffered the most significant loss, dropping 13.5%, after the announcement of news on Kazakhstan’s drilling plants on Friday. New Fortress Energy (NASDAQ: NFE) declined by 6.3%, while Golar LNG (NASDAQ: GLNG) lost 4.7%. Other declines were around 2.2%, represented by Korea Line Corporation (KRX: 005880), Awilco LNG (OSE: ALNG), bp (NYSE: BP), and Excelerate Energy (NASDAQ: EE). Capital Product Partners L.P. (NASDAQ: CPLP) declined by 1.7%. However, the low number of major declines is a positive sign of investors’ sentiment.
All-time highs
There were also a few upward moves, around 2%. Dynagas LNG Partners (NYSE: DLNG) gained 2.8%, and Cool Company Ltd (NYSE/OSE: CLCO) added 2.2% in Oslo. MISC Group (KLSE: 3816) closed the week with a gain of 1.1%.
In summary, the UPI has failed to reach all-time highs, but optimism, represented by side movement, still persists, at least when compared to the SPX.
Traded companies
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 covered over 65% of the world’s LNG carrier fleet in 2020. 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: Linkedin
