Share this
Digg
Del.icio.us
StumbleUpon
Netscape
Yahoo
Technorati
Googlize this
Facebook
Export PDF
Print
E-mail
Shares of Singapore-listed container shipping firm Neptune Orient Lines (NEPS.SI) fell as much as 2.5% on Friday because of oversupply in the industry and falling container rates.
There is also general negative sentiment in the shipping industry following floods in Australia, although it is not directly affecting container traffic.
“The rates are a little bit off because there is more capacity in the market,” said Robert Bruce, an analyst at CLSA Asia Pacific.
“All the ships are back in operation and there has been a reasonable number of deliveries of new large vessels, so it’s a demand and supply function.”
At 0400 GMT, NOL shares were down 2.1% at S$2.33 on a volume of 3.6 million shares.
“Our view is that the recent floods in Australia have a negative impact on dry bulk stocks because a big portion of the volumes of coke, coal and other bulk commodities will likely decline,” said Teddy Tsai, an analyst at DnB NOR Markets.
“But in the long term, I am pretty positive on container shipping as a whole. The supply growth this year is not that intensive and there are expectations that the macro recovery will continue, which will benefit the industry,” he added.
