Neptune Orient Lines (N03.SG) off 1.0% at $2.05 after group’s operating data for 4-weeks ended September 17 show slowdown in container shipping volume growth (+6.0% on-year vs +13% previous period), softer freight rates, down 2.4% on-period, says Dow Jones. 
But volume thin, suggests data not major surprise to market. OCBC, which rates stock at Buy with S$2.41 fair value, says data suggest freight rates could have peaked, but despite slightly softer on-period performance, “NOL’s YTD performance has improved significantly as compared to a year ago, and we continue to expect the group to return to profitability in FY10.” 

 

Notes, NOL returned to black in 2Q 2010 after six consecutive quarters of losses “and we expect its recovery to gather momentum in 3Q 2010 as the full impact of Transpacific rate hikes set in.” Adds, 3Q 2010 results, due 19 October, next potential catalyst; says of interest is management's outlook on freight rates, volumes in 4Q 2010 and beyond, as well as demand visibility. 20-day moving average at $2.02 tipped as immediate support.