Shipping Monitor - Will the gloom ever end?

[RAJESH DESAI]

 

	26 June 2012 Regional
Sector Flash Note
Shipping Monitor  [ PDF ]
Will the gloom ever end?
NEUTRAL - Upgrade
- by Raymond YAP, CFA
A client asked last week how it felt to be staring at never-ending gloom in the shipping sector. Not elating, for sure but opportunities are aplenty for investors who look beyond the immediate horizon. Last week, MISC’s share price rose 8% after falling 41% in the past year. Could this signal the start of a sector-wide share price recovery? Perhaps, but investors will have to wait 1½ years or more to reap the fruits. Given the sharp fall in share prices, we upgrade our sector view to Neutral from Underweight, and highlight quality names such as MISC, Pacific Basin and OOIL for the long haul.
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CA. Rajesh Desai