The Chinese People’s Liberation Army began to conduct exercises on the 4th that affected the shipping lanes. Coincidentally, the shipping giant Maersk (Maersk) issued a forecast that global demand will decline. (Photo source/retrieved from Airliners & Ships channel)
Shipping stocks encountered two major bad news on the 4th, and fell into a long-short war. Evergreen and Yangming closed in red, Wanhai closed in black, and bulk stocks closed in almost all blacks. Retail investors fell into wait-and-see. Up 0.43%, the overall trend is still unclear, waiting for the PLA to make further moves.
The scope of the six major military exercises started by the Chinese People’s Liberation Army on the 4th affects the shipping lanes. Coincidentally, the shipping giant Maersk (Maersk) predicted on the 3rd that the global economic outlook will be more bleak due to the impact of inflation and rising energy prices. Containers in 2022 Demand will be in the low range of -1% to 1%.
The Chinese People’s Liberation Army drills to block the waterway, and the shipping stocks are at war with each other
Affected by two major news, shipping stocks were weak on the 4th, and fell across the board at the opening, and then the stocks rose and fell. In the end, Evergreen closed at 94 yuan (up 0.86%), Yangming closed at 87.5 yuan (up 0.57%), but most shipping stocks still closed in the black although the lower shadow was drawn. For example, Wanhai once fell 2.8 in the session. % to 101.5 yuan, the decline narrowed to -0.48% in late trading, to close at 104 yuan.
Bulk shipping Taiwan Airlines fell 1.8% to close at 27.2 yuan, Xinxing fell 1.53 to close at 22.6 yuan, Huiyang KY fell 1.19% to close at 66.4 yuan, China Airlines fell 0.39% to close at 38.75 yuan, Siwei Airlines fell 0.67%, It closed at 29.85 yuan, and Taihua Investment Control closed at 84.8 yuan.
Shipping giant Maersk initially reports that consumer demand will weaken
Evergreen and Yangming rose slightly, because Evergreen bought the most shipping stocks for the three major corporations, with a total of over 3,000 sheets. On the contrary, Yumin and Siweihang, the three major corporations bought over a few hundred sheets on the 4th, but still Going down, the overall disk situation fell into wait-and-see, and the trading volume also shrank significantly.
The Maersk report noted that signs of a slowdown in business in Europe were particularly evident, with inventories building up at ports and warehouses as consumer demand weakened, and the Russian-Ukrainian war and the lockdown in China will only exacerbate this congestion. Political uncertainty and inflation from higher energy prices continue to weigh on consumer sentiment and growth expectations.”
In addition to Maersk’s report, after US Speaker Nancy Pelosi announced her visit to Taiwan, even before the PLA officially announced military exercises, the over-buying of shipping stocks by legal entities has actually gradually narrowed.
Shipping stocks are at war between long and short, and the follow-up trend will be decided by the People’s Liberation Army
Taking Wanhai as an example, after the stock price hit 107 yuan on August 1, the legal person began to adjust, and the over-buying began to shrink, and some legal persons even sold on rallies. Buying, selling at an average price of 103 yuan and 102 yuan respectively in the past four days, Cathay Pacific Securities Taoyuan point also shipped after the stock price rose, selling at 106 yuan.
The market has two polar views on the future trend of shipping stocks. Many parties cited the 1996 PLA exercise, and the missile rebounded by a thousand points after the missile was fired. Therefore, this time should also be regarded as a short-term event and buy on dips. However, there are also legal persons who believe that they should wait a few more. Today, the launch of the Dongfeng missile has been announced, and it should be observed whether the PLA makes further moves before making a decision.
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