Last week, the UP World LNG Shipping Index (UPI) gained 5.05 points or 3.18%, closing at 163.72 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a loss of 1.52%. You can find both indices in the image below.
UPI continues rising, setting a new all-time high record. A last-week correction proves this recent rise, and UPI seems to have finally found the power to use the momentum of the winter season.
The most gained Capital Product Partners LP (NASDAQ: CPLP), which has continued rising since December 25, when the transformation to a company, LNG specialisation and new vessels acquisition was announced. Last week, CPLP gained 13.4%.
Then, the Japanese trio traditionally supported UPI’s rise. This time, all three shippers – NYK Line (TSE: 9101), Mitsui O.S.K. Line (TSE: 9104) and “K” line (TSE: 9107) added around 9%.
Flex LNG (NYSE / OSE: FLNG) gained 7.6%, rising close to its resistance level. Now, there is a chance to break through this level and continue the rise.
There were also two other gainers with a similar gain of 4.4%. The first is Oslo´s listing of Cool Company (NYSE / OSE: CLCO). The second is Dynagas LNG Partners (NYSE: DLNG). As the balloon payment of DLNG is close and new information about refinance should be announced this quarter, some investors might start building a position, expecting a renewal of dividend payments.
Only two decliners will be mentioned. Excelerate Energy (NASDAQ: EE) lost 5.8%, making the new lowest closing price since October 2023. New Fortress Energy (NASDAQ: NFE) is the second with a loss of 3.6%. As EE seems to continue the downtrend, NFE made a correction / break down a small range after an up trend.
In summary, LNG shippers seem to find a guide for growth despite SPX declining and speculation on the Fed´s rates continuing. The geopolitical situation is said to push all shippers up, but we think the seasonality is a more substantial reason for the rise of LNG shipping stocks.
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.
Source: UP-Indices.com