Norwegian performers- Shipping stocks

Earlier I have outlined two of the major sectors of the Oslo Stock Exchange, oil and seafood. Another sector is the Norwegian shipping industry.

While the oil stocks lagging behind cause of the oil price hovering around $50, seafood stocks been correcting from all time high levels, shipping stocks have performed 2017.

The Oslo Market is up a couple percent 2017, shipping however has returned 12%.

The largest Norwegian Shipping companies, Wilhelmsen, Golden Ocean and Frontline.

The biggest performers this year the new entity Wallenius Wilhelmsen and Golden Ocean. WWL into logistics and transportation of vehicles returning 45%. Golden Ocean, one of John Fredriksen’s companies, into dry bulk, with a 34% gain.

Perhaps shipping is profiting from world wide growth. IMF has prognosed world growth to be around 3.5% 2017.  Shipping tending to be cyclical.

Analysts believing in the new Wallenius Wilhelmsen entity also good for the shipping sector.

Dry bulk been down cause of a negative demand and supply situation around the shipping market for dry bulk ships. Now the market believes this situation to be improving.

The shipping index up 12% 2017 we have to say is competitive. The broad US index S&P 500 +8% the first half of the year 2017.  While oil and seafood stocks have met their challenges, shipping stocks with a nice rally.

Always stocks worth watching.  In retrospect shipping stocks been the Norwegian sector to have been invested in 2017. A pretty good chance of the sector to keep its momentum.

Let us all hope for a good start of the upcoming Q2 profit season.

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