LNG shipping stocks: Still in the highest resistance area
Last week, the UP World LNG Shipping Index (UPI) lost 1.24 points or 0.80%, closing at 154.60 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, also experienced a loss of 2.93%. You can find both indices in the image below.
Despite a decline, UPI is still near strong resistance, just below all-time highs, while SPX has dropped sharply for the third consecutive time.
It’s worth noting that the hope for UPI to make a new historical maximum still lies mostly with Asian companies. However, it’s important to remember that growth has been denied several times in this area.
The difficulty of movement in this area can be seen from the fact that the most significant growth in the UPI was only 3%. This growth was achieved by the Japanese company M.O.L. (TSE: 9104). Another highest increase made the Belgian company Exmar (BSE: EXM) – only 1.8% – but unfortunately, this company will be excluded from the stock exchange. Hence, other factors also impact the movements of its shares.
The number of UPI’s declining constituents was higher than growing ones, but even the fall in stock prices was quietly insignificant—the most lost New Fortress Energy (NASDAQ: NFE), which declined by 3.9 %.
Qatar Gas Transport Company (QSE: QGTS) and Golar LNG (NASDAQ: GLNG) both marked a decrease of around 3%, while Excelerate Energy (NASDAQ: EE) lost 2.6%. After just a one-week correction, Excelerate Energy continued its downtrend and hit a new low. The other decreases were typically less than one percent, except DLNG, which dropped by 1.5%.
Summary: UPI is in a volatile period, trying to make a new all-time high. It holds itself in the last resistance, but the pressure of sellers is high, and the development of SPX doesn´t offer any support now.
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 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.