labels: shipping, investment - general, bse
Shipping stocks shinenews
Nisha Das
29 July 2003

Mumbai: The booming international charter freight markets have spurred most shipping stocks to new heights during the past six months.

While mid-sized Mercator Lines touched Rs 76 on Monday, registering a growth of 130 per cent from its 1 January close of Rs 33, GE Shipping has touched a new high at Rs 56 from its earlier close of Rs 32 per share. The scrip has registered a growth of 75 per cent.

Among the other shipping majors, Essar Shipping has gained around Rs 10 during the same period. The Essar scrip closed at Rs 14.27 on Monday. Other shipping firms like Varun Shipping and Shreya Shipping have registered a growth of more than 35 per cent during the last six months. Varun closed at Rs 13.65 on Monday on the Bombay Stock Exchange (BSE) while Shreya Shipping closed at Rs 8.

The proposed disinvestment of Shipping Corporation of India has triggered better valuation for the company's scrip. However, SCI scrip has recorded an increase of only Rs 4 per share. The scrip on Monday has closed at Rs 70 at the BSE.

Shipping analysts say the stock price spurt is due to the sudden boom in charter and freight rates in various tanker and dry bulk segments. The average daily charter earnings on built Suezmax tanker has risen to over $40,000 from $31,328 in the beginning of May 2003.

A major spurt is visible in the charter rates of very large crude carriers which have risen to around $38,000 from $22,457 from May 2003.


 search domain-b
Shipping stocks shine