Shipping Shares Push Higher ahead of China’s June Lockdown Lifting

Thailand’s shipping stocks are advancing in the morning session on Tuesday, spurred by China’s June lockdown easing.

As of 11.25 hrs. local time in Thailand, the share price of Precious Shipping Pcl. (SET: PSL) rose THB1.10/share, or 5.91% to THB19.70/share, with a trading value of THB291 million.

The share price of Regional Container Lines Pcl. (SET: RCL) rose THB1.50/share, or 3.37% to THB46.00/share, with a trading value of THB223 million.

The share price of Thoresen Thai Agencies Pcl. (SET: TTA) rose THB0.25/share, or 2.58% to THB9.95/share, with a trading value of THB167 million.

China reported on Monday fewer Covid-19 cases in Beijing and Shanghai, with authorities pushing for stimulating the economy by easing some of the initiatives since the outbreak more than two year ago. Curbs on movement in several districts started to be loosened on 29 May after authorities said the outbreak was under control. The easing caseload has eased concern that Beijing could have been headed for a lockdown when it was reporting several dozen cases a day earlier in the outbreak despite increasingly strict restrictions.

In Shanghai, cases dropped to 67 for Sunday from 122 on Saturday. The financial hub yesterday rolled out a raft of measures to support the lockdown-hit economy, including allowing all manufacturing to restart from Wednesday.

Capital Nomura Securities said a rise in shipping stock prices, particularly PSL and TTA, as a result of traders’ expectation of China’s lockdown easing on June 1; when the country reopens, demand for steel and ore will likely increase. Consequently, shipping stocks are anticipated to profit.