Monday, June 13, 2011

NOL falls as shipping rates seen weak

Shares of Singapore-listed container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) fell as much as 4.2% on Monday as analysts expect weak shipping rates due to a potential oversuppy in the market and lower-than-forecast shipments.

At 11:59 a.m., NOL shares were down 3.6% at $1.59 on a volume of 7 million shares.

“While the third quarter is a traditionally strong season, we are not optimistic that rates can rebound strongly, given continued newbuild deliveries and possibly weaker-than-expected shipments,” Deutsche Bank said in a report.
 
Deutsche added that shipments for the coming peak season may fall short of market expectations given the severe power shortages in China. The bank has a sell rating on NOL.
 

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