Major shipping stocks in Thailand fell sharply on Monday as freight rates continued to decline, although the trade is still considered to be in a positive mood with the COVID-19 epidemic and the port’s congestion being eased.
The share price of Precious Shipping Public Company Limited (SET: PSL) dropped THB1.40/share or 9.21% to a 9-month low of THB13.80/share, with a trading value of THB379 million.
The share price of Regional Container Lines Public Company Limited (SET: RCL) dropped THB3.25/share or 7.56% to THB39.75/share, with a trading value of THB555 million.
The share price of Thoresen Thai Agencies Public Company Limited (SET: TTA) dropped THB0.40/share or 4.42% to THB8.65/share, with a trading value of THB314 million.
The share price of Prima Marine Public Company Limited (SET: PRM) dropped THB0.15/share or 2.52% to THB5.80/share, with a trading value of THB31 million.
DBS Vickers (Thailand) Securities forecast PSL’s 4Q21 earnings of THB1.1 billion, up year on year but down quarter on quarter, based on an expectation that the TC Rate for a boxship charter would be US$23,600 per day (+135% YoY, -5% QoQ) in that quarter.
After a peak in 2021, the trend of sea freight rates has now turned downward, despite the fact that it is still deemed to be positive. This was prompted by the COVID-19 pandemic and the port’s congestion being alleviated.
Therefore, DBSVS reduced PSL from BUY to “HOLD,” with a new target price of THB15.80, citing a slowdown in shipment and concerns about the detention of its Thai crew members in Nigeria.
