Market Correction And Volatility Impact UPI Performance

By
Mfame Editor
-
107

  • In Week 31 of 2024, the UP World LNG Shipping Index experienced a minor decline of 0.09%, closing at 165.41 points.
  • Despite this drop, the overall sentiment remains positive, buoyed by gains in a few key constituents.
  • However, broader market volatility and corrections have impacted most LNG shipping companies negatively.

Weekly Performance Overview

The UP World LNG Shipping Index fell by 0.15 points, or 0.09%, closing at 165.41. This decline is attributed to the broader market correction and ongoing holiday volatility. The S&P 500 index also dropped by 0.83%, reflecting broader market trends that influenced the UPI.

Constituents’ Performance

  • Gainers:
    • Awilco LNG (OSE: ALNG) saw a 3.2% increase.
    • Golar LNG (NASDAQ: GLNG) gained 3.1%.
    • Nakilat (QSE: QGTS) rose by 1.6%.
  • Decliners:
    • New Fortress Energy (NASDAQ: NFE) experienced a significant drop of over 21%.
    • Excelerate Energy (NASDAQ: EE) fell by 4.9%.
    • “K” Line (TSE: 9107) and Mitsui O.S.K. Line (TSE: 9104) lost around 3.1%.

Broader Market Impact

The market correction led to the UPI’s decline, although the sentiment remains positive. The current summer period might bring positive news, potentially boosting LNG shippers’ performance.

Asian Stocks Performance

  • Japanese Stocks:
    • “K” Line and Mitsui O.S.K. Line declined by approximately 3.1%.
    • NYK Line (TSE: 9101) saw a 0.7% increase.
    • MISC Bhd (KLSE: 3816) dropped by 0.3%.
    • Korea Line Corporation (KRX: 005880) held steady.

Other Notable Changes

  • Dynagas LNG Partners (NYSE: DLNG) declined by 2%.
  • Capital Product Partners (NASDAQ: CPLP) and Flex LNG (NYSE/OSE: FLNG) both decreased by 1.3%.

About UP World LNG Shipping Index

Established in 2020, the UP World LNG Shipping Index measures the performance of publicly traded companies involved in LNG maritime transport. Covering 18 global companies, it represents over 65% of the world’s LNG carrier fleet. The index offers both freemium and trial access options for detailed performance charts.

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Source: LNG Shipping Stocks