The UP World LNG Shipping Index (UPI) gained 7.08 points or 4.65% last week, reaching a closing value of 152.38 points. This index monitors the stocks of companies that specialise in LNG shipping. The S&P 500 (SPX) index, representing US stocks, gained 1.85%. The image below displays both indices.
After several weeks of preparation, UPI broke up the 2023 resistance. Many constituents supported this rise, and only one rose by a double-digit gain. This supports the thesis of an early start to the season.
Korea Line Corporation (KSE: 005880) was surprisingly one of the top two double-digit gainers, with 22.6%, despite declining all year.
The rest of the gains were milder, primarily by higher single-digit percentages. Excelerate Energy (NASDAQ: EE) was close to the double-digit gain, reaching +9.5%. A rising gap supported the strong.
The Japanese trio gained about 7%. NYK Line (TSE: 9101) gained 8.5%, “K” Line (TSE: 9107) followed with a 7% gain, and Mitsui O.S.K. Line (TSE: 9104) closed with a 6.6% gain.
Flex LNG (NYSE/OSE: FLNG) is strongly returning to the $30 level. Last week, we anticipated the rise to $28, which was quickly reached. Cool Company (NYSE/OSE: CLCO), another LNG shipper from Norway, gained 5.9%. The rise came after three weeks of struggle between buyers and sellers.
Both 20%-weight companies gained similar amounts, around 4%. Nakilat (QSE: QGST) rose 4.1%, struggling to new all-time highs. Golar LNG (NASDAQ: GLNG) broke the resistance by gaining 3.9%, and the same did Shell (NYSE: SHEL), which gained 2.4%.
Awilco LNG (OSE: ALNG) dropped by 0.6%, forming a hammer, TA bullish pattern.
In summary, UPI and its constituents’ strong rise signals an early start to the season.
Source: UP-Indices.com