Last week, the UP World LNG Shipping Index (UPI) gained 1.22 points or 0.75%, closing at 163.28 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a gain of 1.06%, reports LNG Shipping Stocks.
Uncertainty among investors in LNG shipping
There is growing uncertainty among investors in LNG shipping as many UPI constituents are waiting for a new trend to emerge. Stocks of different companies have been rising one week and declining the next, making it difficult to predict market direction. However, there have been some promising signs of growth from a support line, which occurred frequently last week. As we noted previously, only four constituents are currently in an uptrend, which has not changed. Despite the small movements, the UPI is still trading at high levels, and the growth from the previous week may indicate a rapid upswing shortly. However, this is not entirely clear when looking at the development of individual constituents.
Last week, Chevron (NYSE: CVX) and Shell (NYSE: SHEL) experienced growth from the support line in gas and oil drilling. BP (NYSE: BP) returned to the range after a previous breakdown of the support line. CVX and BP gained around 5%, while Shell added 3.4%. Meanwhile, Excelerate Energy (NASDAQ: EE) has risen for the third consecutive week from its support line, gaining 4.2%.
Golar LNG (NASDAQ: GLNG) and Flex LNG (NYSE/OSE: FLNG) also rose in their ranges, with GLNG gaining 4.5% and FLNG growing by 3.5%.
However, Japanese companies NYK Line (TSE: 9101), MOL (TSE: 9104), and “K” line (TSE: 9107) weakened. This trio, plus Capital Product Partners (NASDAQ: CPLP), pushed UPI higher in previous weeks. CPLP also paused but still gained 0.8%
Korea Line Corporation (KSE: 005880) returned to the range, declining 14.2%. Dynagas LNG Partners (NYSE: DLNG) also returned to the range, losing 4.2%.
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Source: LNG Shipping Stocks
