Jan. 29 (Bloomberg) -- China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, rose the most in three weeks in Hong Kong trading after rates for carrying commodities climbed for a seventh straight day.
The company gained as much as 11 percent to HK$4.60 and changed hands at HK$4.55 in Hong Kong at 12:04 p.m. local time. That was the biggest intra-day gain since Jan. 7. Pacific Basin Shipping Ltd., Hong Kong’s biggest dry-bulk shipping line, rose as much as 14 percent.
The Baltic Dry Index, a measure of shipping costs for commodities, rose to a three-month high on demand for so-called panamax vessels to haul coal and iron ore, key steelmaking ingredients. The index plunged 92 percent last year as the global economic recession damped demand for transporting commodities.
“The sentiment is better as the Baltic index breached 1,000 points,” said Ric Leung, a Hong Kong-based analyst at Everbright Securities Co. “Still, fundamentals of the shipping industry haven’t improved as chartering is still not very active.”
Mitsui O.S.K. Lines Ltd., the largest Japanese operator of dry-bulk vessels, rose as much as 5.1 percent in Tokyo. Orient Overseas International Ltd., Hong Kong’s largest container line, rose 11 percent in Hong Kong. The Baltic dry index gained 1 percent to 1,014 yesterday.
To contact the reporter on this story: Wendy Leung in Hong Kong at [email protected]
Last Updated: January 29, 2009 00:07 EST
AGO Price at posting:
$1.20 Sentiment: Buy Disclosure: Held
