LNG shipping stocks had a mixed performance last week, with the UP World LNG Shipping Index (UPI) gaining 0.50%, outpacing the S&P 500, which rose by 0.24%. Despite the overall increase, trading volumes continued to decline, reflecting a cautious market sentiment. Capital Clean Energy Carriers led the gains with a 5.8% increase, followed by Japanese companies NYK Line and MOL. Meanwhile, companies like Exmar and Nakilat indicated potential for further growth, although some stocks, such as Excelerate Energy and New Fortress Energy, saw declines. The UPI, which tracks the performance of LNG shipping companies worldwide, highlights the ongoing volatility in the sector.
UPI & SPX
Last week, UPI, which tracks listed LNG shipping companies, gained 0.87 points, or 0.50%, closing at 173.83 points. The S&P 500 index gained 0.24%. The chart below shows both indices with weekly data.
Week 36-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)
Broader view
The trading volume decreased again, which aligns with the UPI trend. Most UPI constituents saw gains of mostly below two per cent, with some showing stronger gains, particularly in Asia. However, the overall situation is mixed as the number of decliners has increased.
Capital Product Partners LP has rebranded as Capital Clean Energy Carriers, with a new ticker symbol CCEC, and is also listed on NASDAQ.
Constituents
The stock for Capital Clean Energy Carriers (CCEC) had the highest gain at 5.8%. This was followed by the Japanese companies NYK Line (TSE: 9101) and MOL (TSE: 9104), which both rose by 3.8%. NYK Line reached a new high, while MOL is just below its resistance level. The third Japanese company, “K” Line (TSE: 9107), experienced a gain of 0.8%.
Exmar NV (BSE: EXM), Korea Line Corporation (KRX: 005880), and Tsakos Energy Navigation (NYSE: TEN) all experienced a gain of 1.8%. However, their weekly candle charts displayed different patterns. KLC halted its decline within a bracket, potentially forming a higher low pattern. The previous higher high formed at the end of June, indicating a possible new uptrend, but the distance between the high and the low is close to one thousand wons. Exmar continued to rise above the previous resistance, which could suggest potential changes in a buyout price, although no specific information is available. TEN formed a neutral pattern and is currently in a waiting state.
Nakilat (QSE: QGTS) and Golar LNG (NASDAQ: GLNG) both recorded a gain of 1.4%. Nakilat confirmed an increasing appetite and growth from support. GLNG formed a pattern similar to TEN and is currently awaiting the next move, either up or down.
Awilco LNG (OSE: ALNG) resisted selling pressure and maintained support as it awaits Monday’s ex-dividend day. Dynagas LNG Partners (NYSE: DLNG) saw a 1.1% increase but remains close to the edge of the previous upward movement, with a potential risk of decline.
The number of stocks declining was higher compared to the previous week. Excelerate Energy (NASDAQ: EE) experienced a significant 7% decrease, but it’s unlikely that this marks the beginning of a downtrend, especially considering the low trading volume.
New Fortress Energy (NASDAQ: NFE) also declined, but buyers limited the loss, resulting in a 4.5% overall decrease. Flex LNG (NYSE/OSE: FLNG) dropped by 2.5% due to an ex-dividend day but still maintains the higher end of the range.
Source: By Tomas Novotny, UP-Indices.com