Shares of shipping companies have rallied up to 16% on the bourses as the Baltic Dry Index jumped 5.2% on Wednesday to its highest since December 23, 2011.
Shipping Corporation of India (SCI), Mercator, ABG Shipyard, Bharati Shipyard and Varun Shipping Company are up 5-19% in early noon deals on the Bombay Stock Exchange (BSE).
The Baltic Dry Index has rallied 31% to 2,127 in past two weeks from 1,621 on September 12, the Bloomberg data shows.
The Baltic Exchange’s Shipping Indexes are widely followed by analysts, money managers, shipping companies and investors because they provide benchmark rates for transporting dry bulk commodities such as iron ore, coal, and grain across water.
Higher shipping rates are generally positive for shipping companies’ revenues, which will positively affect earnings, cash flows, and share prices.
Among the individual stocks, Bharati Shipyard has soared 19% to Rs 30.35, followed by AGB Shipyard (up 14% at Rs 285), Varun Shipping Company (7% at Rs 7.90), Mercator (up 6% at Rs 13.75) and SCI (5% at Rs 38.30).
Shipping Corporation of India (SCI), Mercator, ABG Shipyard, Bharati Shipyard and Varun Shipping Company are up 5-19% in early noon deals on the Bombay Stock Exchange (BSE).
The Baltic Dry Index has rallied 31% to 2,127 in past two weeks from 1,621 on September 12, the Bloomberg data shows.
The Baltic Exchange’s Shipping Indexes are widely followed by analysts, money managers, shipping companies and investors because they provide benchmark rates for transporting dry bulk commodities such as iron ore, coal, and grain across water.
Higher shipping rates are generally positive for shipping companies’ revenues, which will positively affect earnings, cash flows, and share prices.
Among the individual stocks, Bharati Shipyard has soared 19% to Rs 30.35, followed by AGB Shipyard (up 14% at Rs 285), Varun Shipping Company (7% at Rs 7.90), Mercator (up 6% at Rs 13.75) and SCI (5% at Rs 38.30).