Britain To Build A ‘National Flagship’ To Promote Maritime Trade
by Alistair Smout (Reuters) – Britain is to build a new flagship to promote its business and trade interests around the world, the government said on Saturday, in a move it...
(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 70,084 members that receive our newsletter.
Have a news tip? Let us know.