(Bloomberg) — Golden Ocean Group Ltd., the shipping company controlled by billionaire John Fredriksen, rose the most in a week in Oslo trading after Carnegie Investment Bank AB predicted a revival in the dry bulk market.
Shares in the Hamilton, Bermuda-based company rose as much as much 3 percent, the most since Jan. 25, and climbed 1.3 percent to 5.41 kroner as of 12:31 a.m. in the Norwegian capital. About 1.37 million shares had traded so far, compared to a three-month daily average of 1.3 million.
“The dry bulk market is set for a pick-up in 2014,” Rune Sand, an analyst at Carnegie, said in an e-mailed note. “Golden Ocean Group is one of very few owners with the financial capacity to acquire tonnage in today’s market.”
Carnegie today raised its recommendation on the stock to buy with a price target of 7 kroner.
The Baltic Dry Index, a measure of commodity shipping costs, averaged 920 last year, the lowest since 1986, according to figures from the Baltic Exchange, the London-based publisher of freight rates. Fredriksen will continue to invest in shipping, the industry that helped him build up his fortune, he said in a Jan. 24 interview.
“Looking 1 to 2 years ahead, ship owners that don’t currently have access to capital are going to start ordering new ships,” Sand said. That “should lead to rising newbuilding prices, which will benefit owners with the financial capacity to take advantage of current depressed prices to acquire tonnage early.”
– Stephen Treloar, Copyright 2013 Bloomberg.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 105,932 members that receive our newsletter.
Have a news tip? Let us know.
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 105,932 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
