UP Indices: Strong growth accompanied by rising shipping rates
The UP World LNG Shipping Index, the world’s only stock index focused on companies in the LNG shipping sector, added 2.88 points, or 4.76%, last week.
The largest growth achieved Awilco LNG ASA (ALNG) with 22.6% and Höegh LNG Partners LP (HMLP) with 20.3%. Exmar NV added 16.2%. Both Japanese companies rose for 8.1% (Mitsui O.S.K. Line Ltd.) and 6.2% (Nippon Yusen Kabushiki Kaisha). Dynagas LNG Partners (DLNG) contributed the most to the declines, writing off nearly 6%. MISC Berhad, which a week before lost 7%, added 5.5% now.
Fearnleys in its Weekly Report said that daily spot rates run up to 85,000 USD (East of Suez) and 90,000 USD (West of Suez). Rising Natural Gas and LNG prices confirm the recovery of the LNG sector before coming winter.
US stocks represented by ETF SPY lost 0.4%, very similar to the UP World LNG Shipping Index. Both UP Index and ETF SPY are shown on the chart below.
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 65 % of the world LNG carrier fleet.