3 Shipping Stocks Sail Higher on Rising Freight Rates
An increase in shipping stocks this morning was expected to be a technical rebound following the previous downturn as the BDI freight index continued its upward trend
Three shipping stocks edged higher in the morning session of October 5, 2021, on short-term technical rebound as the Baltic Dry index (BDI) is currently in an uptrend.
As of 11:37 local time in Thailand, the share price of Precious Shipping Public Company Limited (PSL) rose ฿1.00/share or 5.10% to ฿20.60/share, with a trading value of 426 million baht.
The share price of Thoresen Thai Agencies Public Company Limited (TTA) rose ฿0.40/share or 3.08% to ฿13.40/share, with a trading value of 184 million baht.
The share price of Regional Container Lines Public Company Limited (RCL) rose ฿1.00/share or 2.33% to ฿44.00/share, with a trading value of 385 million baht.
According to Finansia Syrus Securities, an increase in shipping stocks this morning was expected to be a technical rebound following the previous downturn. The BDI freight index continued its upward trend, providing support for the shipping group.
The shipping stocks’ profits in 3Q21 are expected to be strong, and if freight rates remain stable or rise further in 4Q21, that will boost the shipping group’s profits.
On the technical side, PSL shares have a support level of 19.5-20.0 baht, while the resistance is 21.0-21.3 and there is a main resistance at 22 baht. TTA has a support level of 12.5-12.7 baht and a resistance of 14.0-14.9 baht, while RCL’s share has a support of 43 baht and a resistance of 47-48 baht.