SROMPL Export Consulting

Your Import/Export Solution

LNG shipping stocks: Will to grow

Are you Looking For Import Export Consultant ?

The UP World LNG Shipping Index (UPI) lost 0.06 points or 0.04% last week, reaching a closing value of 154.30 points. This index monitors the stocks of companies that specialise in LNG shipping. In contrast, the S&P 500 (SPX) index, representing US stocks, gained 2.67%. The image below displays both indices.

Week 18-2024: Chart of the UP World LNG Shipping Index with S&P 500 (Source: UP-Indices)

UPI is currently moving sideways around the top of the 2023 resistance level. The range of its movements is getting narrower, and we expect a significant upward trend soon. The Q1 earnings, a geopolitical update, or an increase in LNG demand could trigger the expected impulse. UPI has managed to survive the early start of the off-season, and if Asia continues to take advantage of low natural gas prices and low spot rates, it could mean an early season. In case of a rise, UPI would follow SPX.
The past week’s moves were similar to those of the previous week, as a group of companies is successfully trying to grow. Let’s start with them.

Dynagas LNG Partners (NYSE: DLNG) has risen above $3, adding another 7% this week. However, there have been some price fluctuations throughout the week, with the highest attempt hitting $3.85 and the lowest closing the gap on this week’s growth. Excelerate Energy (NASDAQ: EE) has also successfully turned the downtrend, gaining 6% and closing in a range of Q4-2023 prices.

In addition, the oil and gas drilling trio, which consists of Chevron (NYSE: CVX), BP (NYSE: BP), and Shell (NYSE: SHEL), have seen gains, too. Chevron gained the most, with a 3.7% increase, while BP rose by 2.5% and Shell added 1.7%. Shell is in the best position as it has no resistance above it, whereas BP and Chevron still have to break some resistance.
The second group of UPI constituents comprises three Japanese shipping companies – NYK Line, MOL, and “K” Line. All three have exhibited similar stock price trends, indicating an upward trend. MOL (TSE: 9104) and “K” Line (TSE: 9107) gained approximately 2.5%, while NYK Line (TSE: 9101) rose by 1.3%.

Flex LNG (NYSE/OSE: FLNG) was willing to grow from the $25 level, gaining 1.4% and closing at $26.15. On the other hand, Capital Product Partners (NASDAQ: CPLP) lost 1.5% but formed a bullish hammer pattern again. A similar pattern also formed for Exmar (BSE: EXM).
The decline of Nakilat (QSE: QGTS) was the primary cause of UPI’s stagnation. Nakilat fell by 3.4%, preventing any potential rise due to its weight in the index. Despite the decline, Nakilat still maintains the price level it gained previously.
New Fortress Energy (NASDAQ: NFE) also fell by 3.4%, but the trend here is downward. Support is expected to be found at around $26.2.

SM Korea Line (KRX: 005880) experienced the most significant drop, losing 4.1%. Support for this stock is expected to be at 1653 Won.
Misc Bhd (KLSE: 3816) decreased by 1.5%, correcting the previous gain of almost 3%.
In summary, UPI and its constituents seem to want to rise.

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: By Tomas Novotny,