D/S Norden A/S, Europe’s biggest commodity shipping company, fell the most in a month in Copenhagen trading after Nordea Bank AB said recent gains were unsustainable and recommended investors sell the stock.
Norden plunged as much as 3.1 percent, the most since Aug. 14. The stock declined 2.2 percent to 222.30 kroner at 11:25 a.m. in the Danish capital, with trading volume at 82 percent of the three-month daily average. Norden shares had jumped 14 percent in the two weeks through yesterday.
Nordea said today Norden’s recent share price advance was helped by higher capesize freight rates, which are “seasonal,” boosted by Chinese infrastructure spending. The increases don’t justify Norden’s share gains, said the bank, which lowered its recommendation on the stock to sell from hold.
“In the short run, capesize rates have the potential to increase further owing both to increased iron ore import to China and seasonality,” Finn Bjarke Petersen, a Copenhagen-based analyst at Nordea, said in a note. “However, with utilization in the dry cargo market hovering around 75 percent, we expect rates to come down significantly in the first quarter of 2014.’