- The UP World LNG Shipping Index (UPI) experienced a marginal decline last week, contrasting with gains in the broader market.
- However, underlying movements within the index suggest potential bullish activity among its constituents.
- Several companies showed resilience amidst selling pressure, hinting at a possible upward trend in the near term.
The UP World LNG Shipping Index (UPI), which tracks companies specializing in LNG shipping, saw a slight decrease of 1.24% last week, while the S&P 500 index registered a modest gain of 0.55%. Despite this dip, observations within the UPI point towards preparations for a bullish move among its components.
Key Insights
- The UPI underwent its regular rebalance with no changes in constituents, but adjustments were made to weights to reflect free float of stocks and the Reduction Gas Ratio. Notably, the weight of Golar LNG (NASDAQ: GLNG) was capped at 20%.
- Despite the overall decline in the UPI, certain companies exhibited notable gains, with Dynagas LNG Partners (NYSE: DLNG) and Awilco LNG (OSE: ALNG) seeing double-digit increases.
- Other companies, including Flex LNG (NYSE/OSE: FLNG), Cool Company (NYSE/OSE: CLCO), Excelerate Energy (NASDAQ: EE), and Capital Product Partners (NASDAQ: CPLP), demonstrated resilience against selling pressure, signaling potential bullish momentum.
- Conversely, Golar LNG (NASDAQ: GLNG), New Fortress Energy (NASDAQ: NFE), and Shell (NYSE: SHEL) closed lower but showed signs of stability amidst downward trends.
Outlook
The mixed performance of companies within the UPI suggests a nuanced outlook for the LNG shipping sector. While certain firms show resilience and potential for upward movement, others face challenges amidst market fluctuations. Overall, the observations hint at the early stages of a potential bullish trend in the LNG shipping industry.
About UP World LNG Shipping Index
Established in 2020, the UP World LNG Shipping Index tracks publicly traded companies involved in the maritime transport of liquefied natural gas (LNG) globally. Covering 18 companies and partnerships worldwide, the index provides insights into the performance of the LNG shipping sector, offering valuable information for investors and industry stakeholders.
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Source: Lngshippingstocks
