LNG shipping stocks: Head ´n´ Shoulders
The UP World LNG Shipping Index (UPI), the world’s only stock index focused on LNG shipping companies, gained 5.78% last week. U.S. stocks represented by the S&P 500 (SPX) index lost 3.35%.
Regular quarterly rebalance took place last week. No constituent was added or removed; the Reduction Gas Ratio (RGR) and Reduction Free Float Factor (RFF) was updated. RGR says how much every constituent is involved in LNG shipping if they do other business like bulk or container shipping.
The weight of constituents changed too. As Exmar started the charter of FSRU Eemshaven (ex-S188), its weight rose the most. On the other hand, the weight of Shell (NYSE: Shel) declined due to problems with FLNG Prelude.
UP Index continues rising even though the SPX has weakened. UPI might set a head and shoulders pattern, but more likely that it is continuing to grow.
Flex LNG (NYSE / OSE: FLNG) was the most rising constituent last week when it added 8.6%. With a gain of 7.7%, GasLog Partners (NYSE: GLOP) followed.
New Fortress Energy (NASDAQ: NFE) and Capital Product Partners (NASDAQ: CPLP) gained 6%. Cool Company (OSE: COOL) added 3.5%.
Exmar also lost most last week, when its price declined by 3.5%, followed by Awilco LNG (OSE: ALNG), which lost 3.4%.
UP World LNG Shipping Index is a rules-based stock index family designed to show and measure the performance of world publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 19 companies and partnerships worldwide, like the USA, Qatar, Japan, Norway, South Korea, and Malaysia. The index covers over 65% of the world’s LNG carrier fleet. 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.