April 23, 2024

The UP World LNG Shipping Index (UPI) demonstrated resilience last week, gaining 1.54 points or 1.01% and closing at 152.82 points. This index, which tracks companies specializing in LNG shipping, outperformed the S&P 500 (SPX) index, a benchmark for US stocks, which experienced a 3.05% decline. The chart below illustrates this notable divergence.

Week 17-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Week 17-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)

UPI has been trading sideways at the top of the 2023 resistance for the past five weeks. The leading US index, SPX, experienced a 3% decline, which could impact all other stocks and indices. This week will be a significant test of the strength of UPI and global LNG shipping stocks. Despite the early off-season, UPI has remained relatively strong and is staying on top of the resistance mentioned earlier.

Most of UPI’s constituents moved slowly last week, but it was still a positive week with small gains. During the week, most constituents overcame negative impulses and pushed their prices back to profitability, establishing bullish signals of technical analysis called doji and hammer.

Dynagas LNG Partners (NYSE: DLNG) gained nearly 7% on above-average volume and closed the week above $3 per unit for the first time since last August, making it the most significant gainer. Excelerate Energy (NASDAQ: EE) was the second top gainer, closing above $16.2 and gaining 6.2%. However, the price still needs to break up a resistance close to $16.5, which would signify the end of the downtrend that started in December 2022, dropping 8.8% from $30.

Awilco LNG (OSE: ALNG) gained 3.6%, and Nakilat (QSE: QGTS) grew by 3%. ALNG is recovering from an ex-dividend term in March when it lost 16.3%. Nakilat didn’t close its February bull gap and rose back to the price range created after the gap, which is optimistic. 

Misc Berhad (KLSE: 3816) and Capital Product Partners (NASDAQ: CPLP) also showed promise as MISC rose to the highest level since July 2020. CPLP closed below the previous resistance a week before and held the price during the past. Technically, it seems optimistic, but the traded volume is very low.

The Japanese trio paused despite a 2% gain of NYK Line (TSE: 9101).

The declines of Korea Line Corporation (KRX: 005880) and BP (NYSE: BP) were similar in size but not in meaning. KLC has been declining since January, but from the highest price since May 2022. On the other hand, BP corrected an uptrend and simultaneously is below a resistance at $40.

In summary, despite the negative influence of the SPX drop, it was still a positive week for the market. Many UPI constituents made bullish patterns, which is a good sign for the LNG shipping industry.

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: UP-Indices.com