As conflict sparked in the Middle East intensifies and sea freight rates rise, shipping stocks are strong on the 11th.
As of 9:16 a.m. on the 11th in the Korea Exchange, STX Green Logis is trading at 3,715 won, up 160 won (4.5%) from the previous session. At the same time, Heung-A Shipping (4.52%) is also strong.
As retaliatory attacks between the United States and Iran continue, tensions around the Strait of Hormuz persist. U.S. President Donald Trump suggested the Middle East risk will be prolonged, saying after the midterm elections that the war with Iran could end and oil prices could fall.
With the threat of a maritime blockade, sea freight rates are on the rise. According to Korea Ocean Business Corporation (KOBC), as of the 7th the container freight index (KCCI) stood at 4,697, up 106 points (2.31%) from the previous week.
Jung Yeon-seung, a researcher at NH Investment & Securities, said, "As attack cases in the Strait of Hormuz are being reported in succession, rates remain strong centered on crude oil tankers, LPG carriers, and MR tankers," and added, "With freight rates elevated across shipping, stocks are showing strength, led by shipping companies with high dividend payout ratios."