LNG shipping stocks: Return to growth?
The UP World LNG Shipping Index, the world’s only stock index focused on LNG shipping companies, gain 0.39% last week. US stocks represented by the S&P 500 Index gained 1.82%.
Shares of companies in the LNG shipping sector continue to return to growth, supported by the approaching winter and the associated growth in interest in natural gas.
The most, by 8.5 %, strengthened shares of Höegh LNG Partners (NYSE:HMLP) and Korea Line Corporation (KRX:005880). Malaysia’s MISC Berhad (KLSE:3816) and Royal Dutch Shell (NYSE:RDS.A) also contributed to growth: 3.9% and 4.6%, respectively.
The development of the Japanese trio was not the same last week. While NYK Line (TSE:9101) gained 1.4%, MOL (TSE:9104) and “K” line (TSE:9107) depreciated by 3 and 3.5% respectively. The price of all three shares was very volatile in both directions, which could indicate the nearness of stopping the decline.
Interesting is the development of shares of Awilco LNG ASA (OSE:ALNG), which in the last four weeks has lazily wiped out the previous 33% growth, achieved within one week. The volume is, of course, above average.
The following picture provides a comparison of the UP Index and S&P 500 development.
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 maritime transport of liquefied natural gas (LNG). This world unique index covers 17 companies and partnerships from countries all over the world like the USA, Qatar, Japan, Norway, South Korea or Malaysia. The index covers more than 65% of the world LNG carrier fleet.