LNG shipping stocks: Support confirmed. What´s next?
The UP World LNG Shipping Index, the world’s only stock index focused on LNG shipping companies, gained 3.37% last week. U.S. stocks represented by the S&P 500 index gained 1.51%.
LNG shipping stocks confirmed a rebound from the support line (green line on the chart below) by growth, which was stronger than the rise of SPX. Only two companies from the UP Index declined.
Two constituents raised by two-digit percent: GasLog Partners (NYSE: GLOP) gained 14.9%, and Chevron (NYQ: CVX) rose by 11.4%. Both stocks were close to their support also.
Similar gain – 9% – had bp (NYSE: bp) and Korea Line Corporation (KRX: 005880). New Fortress Energy (NYQ: NFE) rose by 7.4%.
Japanese trio confirmed our thesis that their decline was caused by ex-date. Last week they gained from 3.9% (NYK Line) to 6.6% (Mitsui O.S.K. Lines).
The only companies lost were Awilco LNG (OSE: ALNG) and Flex LNG (NYSE / OSE: FLNG). ALNG lost 3.2%, FLNG lost 4.6%.
The whole market is still vulnerable. As we wrote in one of the previous articles, we expect UP Index to move now around the support if SPX continues to decline and move up faster if SPX rises. Time spent around the support line is changing the momentum of the UP Index. The longer the UPI goes sideways, and SPX declines, the higher probability of breaking the support line down.
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.