In International Shipping News 10/06/2015
CIMB Research had downgraded the regional container shipping sector from neutral to underweight on the back of a wasted bunker windfall.
“Fear is now the dominant emotion as carriers give away the benefits of lower bunker prices by way of aggressive capacity injections and rate competition,” the report said.
Core earnings per share (EPS) forecasts were reduced for all companies on the back of the weaker-than-expected freight rates, and target prices were also reduced.
CIMB also reduced their rating on SITC International Holding Company shares from Add to Hold, and on Orient Overseas International (OOIL) shares from Add to Reduce.
“Neptune Orient Lines (NOL) remains a Hold, while China Shipping Container Lines (CSCL) is our top Reduce,” the research house said.
