Last week, the UP World LNG Shipping Index (UPI) lost 0.41 points or 0.28%, closing at 147.86 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a gain of 5.85%. You can find both indices in the image below.
The regular quarterly rebalance of UPI was completed at the end of October. No components were added or removed, but the weight of constituents was adjusted based on the actual free float of shares, the ratio of LNG shipping to total revenues, and other factors.
Week 45-2023: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices.com)
The index saw a slight weakening with a volatile performance of individual components. While American listed companies grew, Asian and European companies weakened in general. The rise of US stocks confirms the SPX.
The biggest gain was marked by Nakilat (QSE: QGTS), which rose by 4.3%, after four weeks of decline. UPI constituents often move in a trio, and there were two rising trios: The first group moved up around 3.5%, while the second rose around 2.6%.
The first group includes Awilco LNG (OSE: ALNG), gaining 3.7%, SM Korea Line Corporation (KRX: 005880) with a gain of 3.6%, and Cool Company (NYSE/OSE: CLCO), which rose by 3.4% on NYSE. The second rising group consists of US-listed LNG shippers: Golar LNG (NASDAQ: GLNG), Flex LNG (NYSE/OSE: FLNG), and Excelerate Energy (NASDAQ: EE). They gained 2.8%, 2.6%, and 2.3%, respectively.
Chevron (NYSE: CVX) has partially recovered from its previous decline of 13.5% and gained 2.3%. Lastly, the Japanese “K” line (TSE: 9107) gained 2%.
On the other hand, Exmar (BSE: EXM) suffered a significant decline of over a quarter of its value in a single week. This company is ready to go private as Saverex holds 80% of the stocks. BP (NYSE: BP) declined by 6.3%. Mitsui O.S.K. Lines (TSE: 9104) from Japan lost 4.3%. Another Japanese shipper, NYK Line (TSE: 9101), declined by 2.4%. New Fortress Energy (NASDAQ: NFE) dropped by 2.8%.
In summary, UPI’s decline was softened with the help of changed sentiment in US markets, and the rise of SPX was very strong after the FED meeting.
About: 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 covered over 65% of the world’s LNG carrier fleet in 2020. 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.
Source: UP-Indices.com, By Tomas Novotny