The global market experienced a notable sell-off recently, impacting various indices, including the UP World LNG Shipping Index (UPI) and the S&P 500. Despite the short-term declines, the LNG shipping sector anticipates a strong upcoming season, presenting potential buying opportunities. The UPI also rebalanced, adding Tsakos Energy Navigation (NASDAQ: TSE) as a new constituent.
UPI and S&P 500 Performance
Last week, the UPI, which tracks listed LNG shipping companies, decreased by 1.52 points or 0.92%, closing at 164.76 points. The S&P 500 index also saw a decline of 2.1%. This chart shows both indices with weekly data, highlighting that the SPX’s decline was sharper than that of the UPI. The summer season for LNG shippers, which follows the Q2 maintenance and drydock periods, is expected to strengthen the market despite current volatility.
Market Sentiment and Constituent Changes
The broader market sell-off has affected perspectives, but the positive long-term outlook for the LNG shipping sector remains. The decline is seen as an opportunity for strategic buying, with the sentiment in LNG shipping still optimistic. The UPI was rebalanced, updating the weight of constituents and incorporating Tsakos Energy Navigation (NASDAQ: TSE) as a new addition.
Stock Performance
- Gainers:
- Korea Line Corporation (KRX: 005880): Gained 3.9%.
- Mitsui O.S.K. Lines (TSE: 9104): Gained 3.2%.
- Exmar NV (BRX: EXM): Increased by 2.3%.
- Excelerate Energy (NASDAQ: EE): Rose by 1.8%.
- Decliners:
- New Fortress Energy (NASDAQ: NFE): Experienced a significant drop of 15%, entering a downtrend.
- Golar LNG (NASDAQ: GLNG): Declined by 8.4%.
- Chevron (NASDAQ: CVX): Lost 5.9%.
- Tsakos Energy Navigation (NASDAQ: TEN): Decreased by 5.1%, nearing a downtrend.
- Kawasaki Kisen Kaisha (TSE: 9107): Lost 3.9%.
- Cool Company (NYSE/OSE: CLCO): Dropped by 3.6%.
- Flex LNG (NYSE/OSE: FLNG): Fell by 3.3%.
- BP (NYSE: BP): Decreased by 3.3%, similar to Chevron, close to breaking the last support area.
- Capital Product Partners (NASDAQ: CPLP): Lost 2.1%.
- Awilco LNG (OSE: ALNG): Dropped by 2%.
- Nakilat (QSE: QGTS): Decreased by 1.1%.
Other declines were less than one percent, indicating a varied performance across the sector. Despite short-term challenges, the market’s long-term prospects remain promising, suggesting potential opportunities for investors.
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Source: LNG SHIPPING STOCKS
