Last week, the UP World LNG Shipping Index (UPI) stayed at the previous level, gaining 3.79 points or 2.62%, closing at 148.50 points. This index tracks the performance of LNG shipping companies. The S&P 500 (SPX) index, representing U.S. stocks, experienced a gain of 2.49%. You can find both indices in the image below.

LNG shipping stocks experienced a decline until the Fed announcement, when they joined the rest of the markets and rose. The chart indicates that UPI has been moving within a range of more than a year. UPI is expected to start a new trend soon. However, UPI’s rise was due to almost no declines, so the mild gains that prevailed were enough.

Japanese Mitsui O.S.K. Lines (TSE: 9104) gained nearly 6%, making the most gains. Exmar NV (BSE: EXM) gained 4.2%, while Chevron (NYSE: CVX) and Korea Line Corporation (KRX: 005880) moved up by 3.5%. The other gains were approximately 1-2%, which is not enough to break the resistance. Of course, increasing geopolitical dangers in the Strait of Hormuz and the drying Panama Canal hardened the sail. Closing the Suez Canal will mostly affect Qatar´s LNG export to Europe, so this might lower the risk of attacks on LNG carriers.

Dynagas LNG Partners (NYSE: DLNG) experienced the most significant loss, dropping by 4.3%. Excelerate Energy (NASDAQ: EE) declined by 2%.

In summary, the mild gains have stopped the decline, but we need more optimism and more significant gains for a new upward trend.
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)