The UP World LNG Shipping Index (UPI) gained 0.32 points or 0.2% last week, reaching a closing value of 152.38 points. This index monitors the stocks of companies that specialise in LNG shipping. The S&P 500 (SPX) index, representing US stocks, gained 0.51%. The image below displays both indices.
Last week was very volatile for all stock markets, especially on Wednesday. The latter part of the week was positive for most U.S.-listed LNG shippers. UPI showed small movements but still maintained high levels for the year. Comparison with SPX shows that even the small rise was a good result.
The biggest gain was seen in Asia, with SM Korea Line Corporation (KSE: 005880) rising by 13.7%. This was the only double-digit rise last week. SM KLC, a minor constituent, continued its rise after a two-week break, following a 22% gain at the start of May.
Awilco LNG, another minor constituent listed in Oslo (OSE: ALNG), recorded the second-largest gain, rising by 8.9% last week. The company also continued to build on previous growth, although it took three weeks for the decision to materialize.
Following closely was Excelerate Energy (NASDAQ: EE), which rose by nearly four per cent after two weeks of losses.
Several stocks experienced gains of two to three per cent, including Chevron (NYSE: CVX), Shell (NYSE: SHEL), Dynagas LNG Partners (NYSE: DLNG), BP (NYSE: BP), Mitsui O.S.K. Lines (TSE: 9104), and Capital Product Partners (NASDAQ: CPLP).
The Japanese company NYK Line (TSE: 9101) saw an increase of slightly less than two per cent.
On the other hand, Norwegian company Cool Company (NYSE/OSE: CLCO) experienced the greatest loss at 5.6%. Belgium’s Exmar (BSE: EXM) saw a decrease of 4.1%, and there are indications that the company may be delisted due to its erratic movements.
Of course, a group of companies moving by two to three per cent is also found here, with a negative sign. It is led by Nakilat (QSE: QGTS), which has written off 2.7% after promising previous developments. Although continuing the decline cannot be ruled out, the stock is trading near its highs. The group also includes Flex LNG (NYSE/OSE: FLNG) and Golar LNG (NASDAQ: GLNG). Here, too, we cannot speak of an apparent change in trend, even though buyers significantly crowded out sellers at GLNG. Movements are, therefore, more corrective than trendy. Nakilat and Golar are the largest constituents of the UPI, with each holding a 20% stake.
In summary, stock market volatility also involved LNG shipping stocks. The UPI is moving on to the top levels of this year and continued in small moves.
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