Maersk loses almost 5% 📉Shipping groups under pressure from Gaza ceasefire scenario

3:26 pm 11 June 2024

Shares of major global container ship operators like Hapag Lloyd (HLAG.DE), ZIM (ZIM.US), and Maersk (MAERSKA.DK) came under pressure today. The largest global container carrier, Maersk, is down 5% today and has been under pressure for days after Deutsche Bank downgraded the company.

  • The stock market saw higher odds for peace in Gaza, after Hamas told Reuters that it had accepted a United Nations (UN) peace resolution for the region. As a result, some of the premium that was present in the container freight market, due to the higher risk and problematic situation in the Red Sea, could be wiped out, lowering freight rates.
  • Nordnet analysts pointed out that if the UN decision is accepted, it could weigh on sentiment in the maritime industry, as it could put an end to the Huti attacks, in the Red Sea. As a result, freight rates could fall again, in view of the significant surplus cargo capacity available on the market.
  • Losing the most heavily (more than 10% before Wall Street opened) today are the shares of Israeli company ZIM, which were recently downgraded to 'sell' by Morgan Stanley. The company has significant exposure to spot rates, which depend on the current economic climate and market valuations of transportation rates, because it expected them to continue rising this year.
  • Should rates tumble from their current high levels, the currency could be weighed down. We already know that Israel will not support the UN and Hamas peace proposal, as it is still counting on achieving all the goals of the Gaza war operation. Stock market values, however, have not reacted promptly to these reports and the sell side still prevails.


Freight rates are behind a huge, several-fold increase from levels in the fall of 2023. Source: Drewry

MAERSK shares (MAERSKA.DK)

Maersk shares are testing the 200-session moving average (red line) today, and have almost completely erased this year's gains, despite the several-fold increase in freight rates; their increase, however, is offset by the company's higher operating costs. 


Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.