February 27, 2024
The UP World LNG Shipping Index (UPI) dropped by 0.88 points or 0.56% last week, reaching a closing value of 158.46 points. This index monitors the stocks of companies that specialise in LNG shipping. In contrast, the S&P 500 (SPX) index, representing US stocks, gained 1.66%. The image below displays both indices.
UPI continues to move between two ranges; one was established last year, and its top level is at 157. The second one started this year, with the lower level at 159 points. UPI aims to the lower range as the off-season probably started early. Now is the time to mention one of our previous statements: the longer UPI tries to break up 2023 resistance, the better support this level will be in future. The future comes now. Paradoxically, this statement is more confirmation of a downward direction than an upward one, as the upside move will be easier. Staying between two ranges shouldn´t take long, as both ranges are referred by high traded volume. The volume between them is low. And there are not enough buyers on the stock market now.
Individually, constituents mostly did the opposite of the last week. So if they went up, this week dropped, and vice versa. Let´s comment on the most interesting.
Nakilat (QSE: QGTS) gained 2.3%, but more importantly, it holds levels of last week, even with the enormous gain. This is very positive for all LNG shipping companies and investors, as it shows the strength and importance of the sector.
Japan´s trio, NYK Line (TSE: 9101), Mitsui O.S.K. Lines (TSE: 9104) and “K” Line (TSE: 9107) gained but mostly wasn´t able to stay above previous closing prices. Only MOL did. “K” Line made the most significant growth of the past week: 2.8%.
Cool Company (NYSE/OSE: CLCO) continued to increase, gaining 2%, but the price is still below the April´23 range.
The number of decliners was higher, let starts in Asia. Korea Line Corporation (KRX: 005880) lost 5.4% and closed below critical levels around 2055. MISC (KLSE: 3816) lost 2% and continues sideways.
Dynagas (NYSE: DLNG) lost 7.5% and returned to the range where it started three weeks ago. Its volume is still very low. Flex LNG (NYSE/OSE: FLNG) lost 5.6% after going ex-dividend. Golar LNG (NASDAQ: GLNG) closed at the same level as in the last two weeks.
In summary, LNG shipping stocks are likely to weaken rather than rise.
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