Neptune Orient Lines (N03.SG) has extended recent gains, gaining 1.7% at five-week high of $1.83, outperforming most other blue chips.
Shares of NOL have gained 8.4% since the start of this week vs STI’s 0.9% rise over same period, as investors accumulate on hopes of firmer freight rates in coming months.
Its share price resilience suggests NOL’s recent reiteration of expected bottomline losses until 1H10 already priced in.
Last Friday, the Straits Times Index dropped 0.4% to 2,757.14.
Asian investors are likely to be wary ahead of the opening of Shanghai shares on Monday after a week-long holiday for the Lunar New Year, but last week’s gains on Wall Street could offset any negative sentiment.
The following companies may have unusual price changes in trading today. Prices are from Friday’s close.
Singapore’s benchmark Straits Times Index (.FTSTI) rose 0.7% to close at 2,753.63 points yesterday. US stocks rose last night after a pledge by European leaders to support debt-laden Greece eased fears of a broader euro zone crisis, and upbeat data from China spurred mining and material stocks.
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Olam International, the producer and trader of agricultural commodities, reported a 54% increase in second-quarter profit as a global economic rebound helped fuel an increase in demand for food. Net income climbed to $158.9 million in the three months ended Dec 31 from $103.4 million a year earlier. Revenue increased 28% to $2.84 billion.
The company, around two-thirds owned by Singapore state investor Temasek Holdings (TEM.UL), has cut staff and reduced capacity over the past 15 months to cope with weaker cargo volumes, but it said demand is gradually returning.
Global container shipping, terminals and logistics group Neptune Orient Lines (NOL) today announced a net loss of US$741 million ($1.05 billion) for 2009, compared with a net profit of US$83 million for 2008.
For the fourth quarter of 2009 (4Q09), NOL recorded a net loss of US$211 million, compared to a net loss of US$149 million for the fourth quarter of 2008 (4Q08).
Revenue for 2009 was down year-on-year by 30% to US$6.5 billion.
Singapore’s Straits Times Index climbed 1% to 2,747.42 as of the 12:30 p.m. trading break, snapping losses of 1.3% in the past three days, reported Bloomberg. Eight stocks advanced for each that fell on the 30-member gauge.
Stocks on the measure trade at 14.7 times estimated earnings, compared with about 10 times at the start of 2009, according to data compiled by Bloomberg.
Neptune Orient Lines says shipping volumes increased 43% y-o-y to 312,500 FEU (Forty-foot Equivalent Unit) for the six weeks of Period 12 from Nov 14 2009 to Dec 25 2009 while average revenue per FEU declined 25% to US$2,189 over the same period last year.
The improvement in volume was due to higher volumes lifted in all major trade lanes. Lower average revenue per FEU was due to lower core freight rates, lower bunker recovery and changes in trade mix.
2009 container shipping volumes declined 7% while average revenue per FEU declined 25% over 2008 levels.
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The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index lost 0.6% to 2,916.11.
US stocks slid in a broad selloff last night as investors pummeled financials on concerns about a potential government levy on banks, while Alcoa Inc’s disappointing results tempered optimism about the economic recovery.
Singapore’s Straits Times Index gained 0.3% to 2,940.55 as of 9:30 a.m., set for its highest closing level since July 2008. Three stocks advanced for every two that dropped on the 30-member gauge. Stocks on the measure trade at 15.9 times estimated earnings, compared with about 10 times at the start of 2009, according to data compiled by Bloomberg. The following shares were among the most active in the market.
Neptune Orient Lines rose to its highest level in nearly four months after Deutsche Bank AG upgraded the stock to “buy” from “hold” and raised its share-price forecast to $2.04 from $1.64.
Neptune Orient Lines gained 2.3% to $1.79 as of 9:10 a.m. in Singapore, heading for its highest closing level since Sept. 24. The benchmark Straits Times Index added 0.30% to 2,940.10.
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The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close.Singapore’s Straits Times Index gained 0.4% to 2,930.49.
The Dow and S&P 500 inched higher, while the Nasdaq dipped yesterday after Federal Reserve officials said they were worried about labour market weakness and a report on the services sector showed only slight improvement in the economy.
The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index was little changed at 2,813.27
US stocks fell last night as the dollar’s rebound spurred a safe-haven trade, cutting demand for riskier assets, while a soft profit outlook from economic bellwether FedEx sank transportation shares.
Neptune Orient Lines (N03.SG) gained 0.7% to $1.54, tracking modest gains by most other blue chips, although buying was not widespread and volume stayed light, suggesting investors may still be concerned about impact of weak freight rates on bottomline.
“We expect the average rate to remain low until at least May or June, pending the renegotiation of transpacific rates,” says CIMB, which has “trading sell” call with a price target of $1.60.
The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index added 0.2% to 2,796.98 last evening.
US stocks ended slightly lower last night after comments by Federal Reserve Chairman Ben Bernanke sparked jitters about the economic recovery. Bernanke said the economy faces “formidable headwinds”, including a weak labour market and tight credit conditions.
Container shipper Neptune Orient Lines says for the 4 weeks from Oct 17 to Nov 13 (Period 11), container shipping volumes increased 23% y-o-y to 208,000 FEU (Forty-foot Equivalent Unit) while average revenue per FEU declined 28% y-o-y to US$2,239 ($3,109).
The increase in volume was mainly due to higher volumes lifted in several trade lanes. Lower average revenue per FEU was due to lower core freight rates and lower bunker recovery.
P11 YTD, 2009 container shipping volumes declined 12% to 1,976,200 FEU while average revenue per FEU declined 24% to US$2,301 over P11 YTD, 2008 levels.
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