Cosco (F83.SG) pares losses, flat at $1.45 vs $1.44 earlier, as latest down payment received for 2 shipbuilding jobs reinforces view of firmer orderbook after spate of contract cancellations, delivery delays last year, says Dow Jones.

Interest, however, subdued as volume light, with any upside likely to meet resistance at 15-day moving average, last at $1.49; support at $1.40 (last breached June 15).

“With 18 vessels delivered year-to-date, we believe that there is scope to increase our shipbuilding margin assumptions with this significant improvement in execution,” says Kim Eng Securities, which has Hold call with $1.44 target.

“We have reason to be optimistic on its prospects, based on the likely recovery in the shipyard business. However, valuations are still not entirely compelling at this point.”

Latest 2 contracts part of 15 orders placed by European ship owners worth combined US$440 million ($613 million) announced last month.