US Says Russia and Ukraine Agree to Ceasefire in the Black Sea
The US said Russia and Ukraine have agreed to a ceasefire in the Black Sea and to work out mechanisms for implementing their ban on strikes against energy infrastructure.
0727 GMT 21 November [Dow Jones] STOCK CALL: A.P. Moller-Maersk‘s plan to move away from the shipping segment to focus investment in other businesses, such as oil, drilling rigs and ports, is “more sensational than substantial” as it is aimed at diversifying its capital base rather than emphasizing a write-off of container shipping, Maybank-Kim Eng says.
The move shouldn’t be seen as surprising as Maersk Line primarily focuses on the Asia-Europe trade, which is reeling from the eurozone crisis, the house notes. It keeps NOL (N03.SG) as its prime pick for a container-shipping recovery, noting it only has about 16% of its volume from Asia-Europe. It notes NOL also isn’t without diversification avenues, with aims to grow its Logistics business to 30% of revenue from the current around 15%.
“NOL’s strength in the Trans-pacific trade will be a key contributor to a profitable 2013 for the company, providing a springboard to an even better 2014 when the capacity situation abates.” It keeps a Buy call with S$1.46 target, premised on a demand-led recovery in the container segment, spearheaded by the U.S. economy. The stock is up 5.7% at S$1.12.
Leslie Shaffer, (c) 2012 Dow Jones & Company
Sign up for gCaptain’s newsletter and never miss an update
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Stay informed with the latest maritime and offshore news, delivered daily straight to your inbox
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up