LNG shipping stocks: Uptrend still continues

LNG shipping stocks continued their uptrend last week, with the UP World LNG Shipping Index (UPI) gaining 0.37%, while the S&P 500 rose by 4.02%. Most companies in the UPI saw moderate growth, led by Tsakos Energy Navigation, with a 9% rise after a significant dividend increase. New Fortress Energy rebounded with a 6.4% gain, ending a seven-week decline, while Excelerate Energy and Flex LNG also posted solid gains. However, some companies, such as Cool Company and Dynagas LNG Partners, experienced declines. Despite recent growth, market volatility remains high.

UPI & SPX
Last week, UPI, which tracks listed LNG shipping companies, gained 0.60 points, or 0.37%, closing at 165.94 points. The S&P 500 index gained 4.02%. The chart below shows both indices with weekly data.

Broader view
Last week, global stock markets experienced a significant calming as they stopped declining and started to go up. This recovery mainly occurred towards the end of the week, as the first half did not look very optimistic. However, it’s important to note that the markets are still very volatile, with large and rapid movements in both directions being common.

The UPI rebounded from the trend line and is continuing in an uptrend. If this trend continues, we should see the 174-point mark being surpassed in the coming weeks.

Constituents
The recovery has impacted virtually all the companies in the UPI, although mostly, it has been a growth of lower percentages. The index newcomer, Tsakos Energy Navigation (NYSE: TSE), saw the highest increase, rising by nine per cent after announcing a dividend increase of 50 per cent. New Fortress Energy (NASDAQ: NFE) halted its seven-week decline and managed to turn a negative start to the week into a 6.4 per cent gain. Excelerate Energy (NASDAQ: EE) also performed well, bouncing off support to add 5.9 per cent.

Flex LNG (NYSE/OSE: FLNG) has also repeatedly benefited from the bounce-off support, adding 3.9% over the past week.
Korea Line Corporation (KRX: 005880) also continues its broad-based uptrend, rising 3.1% just before breaking higher. To confirm the uptrend, the stock needs to climb from 1851 won to 3000 won, which is a significant rise.

This has named the more significant rises and brings us to the smaller ones. We’ll name just one company here: Golar LNG (NASDAQ: GLNG), up 2.3%. GLNG seems to be fluctuating between moving in the next direction. A close above $33.59 or, conversely, below $30.54 could be helpful in making a decision.

The declines were led by Norway’s Cool Company (NYSE/OSE: CLCO), which wrote off 4%. Despite this loss, it is a positive result as selling pressure seems to be high. This is evidenced by the opening gap, which led to an opening decline of 6%. A look at the weekly chart shows the company going sideways for now.

Dynagas LNG Partners (NYSE: DLNG) is putting pressure on its support created by the April growth gap. The 2.7% loss still hasn’t led to a breakout, and the second-quarter results released last week haven’t affected the move.
We’ll end our list with Japanese stocks. The trio of NYK Line (TSE: 9101), MOL (TSE: 9104) and “K” Line (TSE: 9107) lost around 2.5%. All three companies averted the threat of more significant declines. However, the first two still have upside potential, whereas the “K” Line is in a riskier environment.

Established in 2020, the UP World LNG Shipping Index is a rules-based stock index family designed to measure the performance of worldwide publicly traded companies involved in the maritime transport of liquefied natural gas (LNG). This unique index covers 19 companies and partnerships worldwide, representing over 65% of the world’s LNG carrier fleet in 2020. The UP Index offers premium services with freemium and trial access to charts. With Freemium, users can access the basic UPI vs S&P 500 chart after email registration. The trial includes full access for fourteen days.
Source: By Tomas Novotny, UP-Indices.com