Shares of Singapore container shipping company Neptune Orient Lines (NOL) (NEPS.SI) fell as much as 2.9% on Friday due to renewed concerns about high fuel costs, which may hurt the firm’s profit margin, and potentially weakening freight rates.
At 12:11 p.m., NOL shares were down 2.5% at $1.165, underperforming the broader Straits Times Index <.FTSTI> which was 0.2% lower.
OCBC Investment Research said in a report that near record-high bunker fuel prices are likely to depress NOL’s profitability.
It maintained its sell rating and target price of $1.02 on NOL stock.
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