LNG shipping stocks: Volatility is here again
Last week, the UP World LNG Shipping Index (UPI) gained 1.86 points or 1.24%, closing at 152.04 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 1.29%. You can find both indices in the image provided below.
Despite the rise, most of UPI’s constituents weakened, causing only six to close in green. Two of these were from Japan – MOL (TSE: 9104) and “K” line (TSE: 9107) – while others included Nakilat (QSE: QGTS), BP (NYSE: BP), Chevron (NASDAQ: CVX), and also Flex LNG (NYSE / OSE: FLNG), which remained unchanged. Only “K” line exhibited a significant rise, adding 4.5%. The rest of the constituents declined, following the SPX index. But UPI is still in the last resistance below its all-time highs, which is a positive fact.
Excelerate Energy (NASDAQ: EE) experienced the biggest loss, declining 6.7% below its support and reaching the lowest price since the IPO in April last year. Korea Line Corporation (KRX: 005880) showed a similar pattern of decline below the support line, but only if the price is denominated in Won. If we use USD instead of Won, Korea Line Corporation is still holding the support. Two other companies, Cool Company in OSE (NYSE / OSE: CLCO) and Dynagas LNG Partners (NYSE: DLNG), experienced around 2.5% declines. CLCO on NYSE lost just 1.7%.
In summary, UPI is currently in a volatile period. To illustrate this fact better, we publish a second chart that shows the UPI between both tapering Bollinger Bands, indicating that both growth and decline are possible. The market will soon take decisions about future moves. UPI remains in the resistance area, and we are optimistic it will grow above the all-time highs.
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.