Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Pacific Basin Leads Shipping Rally on Rates: Hong Kong Mover

Don't Miss Out —
Follow us on:

Sept. 5 (Bloomberg) -- Pacific Basin Shipping Ltd., Hong Kong’s biggest dry-bulk carrier, led a rally of shipping stocks in the city today as it surged the most in more than four years on higher freight rates.

The stock jumped 9.5 percent, the biggest gain since July 15, 2009, to close at HK$5.17 in Hong Kong trading today. The city’s benchmark Hang Seng Index increased 1.2 percent.

The Baltic Dry Index, the benchmark freight rate for hauling commodities, jumped 4 percent to 1,215, the highest in 21 months in London yesterday on higher demand for iron ore and grains. Carriers and ship owners also slowed speeding and scrapped more vessels to reduce excess capacity to shore up rates, according to a Macquarie Group Ltd. note by analysts led by Bonnie Chan yesterday.

“We believe Pacific Basin is a long-term winner in the sector as it takes advantage of the current slump in asset prices to acquire vessels and enhance its long-term profitability,” Chan said in the note, rating the stock “outperform” with a target price of HK$6.00

China Shipping Development Co Ltd., the commodity-carrying arm of the nation’s No.2 shipping group, advanced 6.7 percent to close at HK$4.33 in Hong Kong trading today.

China Cosco Holdings Co., the nation’s biggest shipping firm that moves containers and commodities, jumped 7 percent to close at HK$3.86.

To contact the reporters on this story: Jasmine Wang in Hong Kong at jwang513@bloomberg.net; Billy Chan in Hong Kong at bchan101@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.