Shares of Neptune Orient Lines (NOL) rose as much as 4.8% to their highest since July after Maersk Line, the world's biggest container shipping firm, said it will cut 9% of its vessel capacity in the Asia-Europe trade, reported Reuters.
"The planned capacity cut should support freight rates and people might be reading across to NOL," said Eric Ong, an analyst at Kim Eng.
By 10:39 a.m., NOL shares were 3.8% higher at $1.50 in a broader market up 0.5%. NOL shares have jumped more than 30% so far this year.
Maersk Line, a unit of Danish shipping and oil group A.P. Moller-Maersk, said the capacity reduction was a move to combat low freight rates resulting from an oversupply of container vessels on the Asia-Europe trade lane.
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